Cancelling student loans?

AlistarWills

All-American
Jul 26, 2006
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I keep seeing where folks claim they voted for Biden based on the premise of cancellation of $50k in student loan dept.
My question is, how can the Federal government cancel a debt you owe to someone else?
Federal student loans are made and then bundled and sold to a 3rd party. At least the one my son’s was. So now the 3rd party owns the debt and the Federal government is out of the picture. How can government come back and say that the 3rd party is not owed? Or is the plan to buy back the debt, plus interest owed and then cancel it?
 

Padreruf

All-American
Feb 12, 2001
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Charleston, South Carolina
I keep seeing where folks claim they voted for Biden based on the premise of cancellation of $50k in student loan dept.
My question is, how can the Federal government cancel a debt you owe to someone else?
Federal student loans are made and then bundled and sold to a 3rd party. At least the one my son’s was. So now the 3rd party owns the debt and the Federal government is out of the picture. How can government come back and say that the 3rd party is not owed? Or is the plan to buy back the debt, plus interest owed and then cancel it?
I think you just nailed it...the Fed backs the loans, so it can call them back and pay them off. I'm not in favor of this...I like the idea of giving each senior citizen 50,000 for working all those years...LOL.
 
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TIDE-HSV

Senior Administrator
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Oct 13, 1999
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I think you just nailed it...the Fed backs the loans, so it can call them back and pay them off. I'm not in favor of this...I like the idea of giving each senior citizen 50,000 for working all those years...LOL.
Agree. $10K is really a pittance. That's what I had in 1963. This is not my last thought on student loans...
 
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MattinBama

Hall of Fame
Jul 31, 2007
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If our rate of pay was in line with the rate of costs of education I doubt so many people would be feeling ripped off & lied to.
 

AlistarWills

All-American
Jul 26, 2006
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What if I had 50k in student loans but paid off 42k of it? Do I still get 50k?
I keep seeing that question posed as well. I’ve paid mine off, will I be reimbursed?
I chose to go another route because I didn’t want to incur that much debt, will I be given the $50k since I paid for what schooling I received as I received it?
 

92tide

TideFans Legend
May 9, 2000
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Not a very good idea when we are already $28 TRILLION in debt, $85,000 per citizen and $223,000 per taxpayer. 130% of GDP

U.S. National Debt Clock : Real Time (usdebtclock.org)
i doubt we will see 50k paid off for student loans in the near future. but you can't just look at the cost of paying those off. you also have to consider the increased economic activity and other follow on effects of those who are no longer having to pay the 50k off.
 
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Bamaro

Hall of Fame
Oct 19, 2001
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i doubt we will see 50k paid off for student loans in the near future. but you can't just look at the cost of paying those off. you also have to consider the increased economic activity and other follow on effects of those who are no longer having to pay the 50k off.
By that logic why not just give everybody 50k. Think of the "increased economic activity and other follow on effects" for everybody.
 
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