Cancelling student loans?

[AlistarWills]

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]

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.

 

[TIDE-HSV]

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...

 

[DzynKingRTR]

What if I had 50k in student loans but paid off 42k of it? Do I still get 50k?

 

[MattinBama]

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.

 

[B1GTide]

The government would pay the loans. It really isn't that hard a concept.

 

[AlistarWills]

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?

 

[Bamaro]

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)

 

[92tide]

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.

 

[DzynKingRTR]

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)

When has a bad idea ever stopped our government before?

 

[DzynKingRTR]

I decided to pay mine off last year. Then the nightmare that is 2020 happened.

 

[Bamaro]

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.

 

[B1GTide]

I paid for my college, my wife's college, my boys' college and have helped pay for other people's college. I have no problem with this, even though I will not benefit. I don't understand people who feel that way.

 

[B1GTide]

By that logic why not just give everybody 50k. Think of the "increased economic activity and other follow on effects" for everybody.

I am hearing 10k, not 50k. No idea where that came from. But when we are giving corporations trillions every year, why not?

 

[DzynKingRTR]

What does 10K even pay for anymore? A semester? A year maybe? There is the real problem.

 

[jthomas666]

Paying off student debt isn't a good solution unless it's coupled with some means of controlling future costs. Otherwise we'll end up in the same situation.

 

[B1GTide]

What does 10K even pay for anymore? A semester? A year maybe? There is the real problem.

It will get you through 2 years of community College in most states.

 

[crimsonaudio]

I think the best solution is to remove interest on the student loan debts.

 

[TIDE-HSV]

I think the best solution is to remove interest on the student loan debts.

That would help enormously. I just computed, since I owed about 10K when I graduated from law school in 1963. It would be like the government forgiving $1100...

 

[4Q Basket Case]

By that logic why not just give everybody 50k. Think of the "increased economic activity and other follow on effects" for everybody.

You don’t think big enough. Why stop there? Why not give every man, woman and child in the country a million dollars? Poverty solved, right?