Sen Elizabeth Warren introduces bill to eliminate college loan debt

rjtide

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https://www.cnbc.com/2019/07/23/elizabeth-warrens-student-debt-bill-would-help-45-million-students.html?__source=twitter|main

i have mixed feelings about this. on the one hand i understand the overwhelming burden of having high college loans has on someone trying to get started in the real world. but i really hate the idea of the burden being shifted on to tax payers. i worked my tail off to pay off my loans....but i can see where a certain subset of borrowers would need help with this. personally i think anyone making more than about $75k per year should not be able to have more than 50% their college loans forgiven.
 

Tidewater

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My freshman year at Alabama, I paid $348/semester. Not per semester hour, per semester.

I'm not sure the education of 30 times better now than it was in 1981.
 

DzynKingRTR

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My freshman year at Alabama, I paid $348/semester. Not per semester hour, per semester.

I'm not sure the education of 30 times better now than it was in 1981.
People now pay more than I paid as an out of state student.

I just question where all the money will come from to pay this off. My guess is huge taxes for me and everyone else. My student loans are almost paid off (i didn't borrow much because I worked 2 jobs to pay the rest) and now I have to pay off student loans for people that got degrees in Sociology and philosophy and gender studies? Free education for all? How? Are professors in colleges going to start making about as much as a waiter?
 

TrueCrimson7

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With what I owe in student loans, I could buy a very nice house. I am against this idea of sweeping loan forgiveness. Contracts mean something. I knew how much I was taking for education, and if I didn't, I should have before signing for them. First, this action teaches that others will pay for your dealings. Bad precedent. Secondly, it removes the valuable lessons of responsibility in making regular loan repayments. I'm sure there are some who want the handouts. It's a slippery slope and not the kind of life I want to lead.
 

crimsonaudio

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So can I get repaid for the loans I diligently paid off?

Do all new students get their loans paid off? All kids can now attend college for free?

Or maybe, just maybe, we could work to reform the collegiate system, making it more competitive and removing degrees that have little or no hope of ever allowing the recipient to repay the loans in the first place...
 

NationalTitles17

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So can I get repaid for the loans I diligently paid off?

Do all new students get their loans paid off? All kids can now attend college for free?

Or maybe, just maybe, we could work to reform the collegiate system, making it more competitive and removing degrees that have little or no hope of ever allowing the recipient to repay the loans in the first place...
I agree the system needs reformed, although I would love to have my loans disappear. The system as it is is not sustainable and is a drag on the economy.
 

seebell

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The articles states where the money will come from on the small chance it passes in current form.
Under Warren’s proposal, introduced along with Rep. James E. Clyburn, D-S.C., borrowers with household incomes under $100,000 would get $50,000 of their student debt forgiven. People who earn between $100,000 and $250,000 would be eligible for forgiveness on a sliding scale – the cancellation amount reduces by $1 for every $3 a person earns over $100,000. And those who earn more than $250,000 would not get any debt relief.

The plan would likely be funded with a 2% annual tax Warren proposes to levy on accumulations of wealth exceeding $50 million, with an additional 1% levy on wealth exceeding $1 billion.

Critics say the plan is costly and fails to address the root of the problem with today’s higher education system. “This proposal does nothing to decrease the cost of college and does not help future students,” said Richard Hunt,

Yep what about the next crop of college students. Will the wealth tax mean free college for all?
 
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BamaHoHo

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https://www.cnbc.com/2019/07/23/elizabeth-warrens-student-debt-bill-would-help-45-million-students.html?__source=twitter|main

i have mixed feelings about this. on the one hand i understand the overwhelming burden of having high college loans has on someone trying to get started in the real world. but i really hate the idea of the burden being shifted on to tax payers. i worked my tail off to pay off my loans....but i can see where a certain subset of borrowers would need help with this. personally i think anyone making more than about $75k per year should not be able to have more than 50% their college loans forgiven.
They shouldn't be able to have any of it forgiven. The government isn't paying for it. We the taxpayers are!
 

Bodhisattva

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In this plan is there the provision to stop the source of this madness: government control of student loans? If not this is just typical government stupidity, where they create a problem and "fix" things by compounding the problem. I've talked before about the daughter of a friend who racked up $160k on a sociology degree and parlayed that into a career as a waitress and office assistant. Would a private lender have approved of such a loan? Highly doubtful. Yet, the government can't wait to shovel money out the door to people clueless about their educational/career choices. The result is crushing the future of a lot of young people and inflating the cost of higher education for everyone. Dumb. Dumb. Dumb. Big government is awesome; we should have more of it.
 

DzynKingRTR

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In this plan is there the provision to stop the source of this madness: government control of student loans? If not this is just typical government stupidity, where they create a problem and "fix" things by compounding the problem. I've talked before about the daughter of a friend who racked up $160k on a sociology degree and parlayed that into a career as a waitress and office assistant. Would a private lender have approved of such a loan? Highly doubtful. Yet, the government can't wait to shovel money out the door to people clueless about their educational/career choices. The result is crushing the future of a lot of young people and inflating the cost of higher education for everyone. Dumb. Dumb. Dumb. Big government is awesome; we should have more of it.
It is going to be awesome. Everyone going to college for free to get degrees in undecided or better yet go to college for free where they party all night, have loads of sex, flunk out and become a burden on society. Yea government!
 

seebell

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Good stats for student loans.
https://studentloanhero.com/student-loan-debt-statistics/

More good info. Looks like the problem is only going to get worse.
https://www.investopedia.com/articles/personal-finance/081216/who-actually-owns-student-loan-debt.asp

Prior to the administration of Bill Clinton, the federal government owned zero student loans, although it had been in the business of guaranteeing loans since at least 1965. Between the first year of the Clinton presidency and the last year of George W. Bush's administration, the government slowly accumulated about $140 billion in student debt. Those figures have exploded since 2009. In February 2016, the U.S. Treasury Department revealed in its annual report that student loans account for 31% of all U.S. government assets.

If you rely on the fair value estimate, the government loses approximately $100 billion to $250 billion per year, including $40+ billion in administrative costs. In other words, the government does not recoup the value of the loans, putting present and future taxpayers in the position of guarantor.
Pretty good deal for the money lenders, Uncle Sam guarantees the loans. What a mess.





 

NationalTitles17

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One could suggest 2008 was necessary for all of us. I don't necessarily agree, but the argument has merit.

This one does not.
That made be so, but my argument as a counterargument to the original argument questioning the act of borrowing to pay off loans is still valid. IOW, we've done it before.

I do see a future where the student loan problem rises to near that same level. It is a huge problem now and one that is growing. I hope we find a different way before this one blows up in our faces.
 

crimsonaudio

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That made be so, but my argument as a counterargument to the original argument questioning the act of borrowing to pay off loans is still valid. IOW, we've done it before.

I do see a future where the student loan problem rises to near that same level. It is a huge problem now and one that is growing. I hope we find a different way before this one blows up in our faces.
And like the home loan debacle that created the 2008 collapse, we're doing that same thing with higher education - loaning money that we know can likely never be paid back because "everyone deserves a home" and "everyone deserves a college education"...
 

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