Cancelling $10k of Student Debt

[purplefaithful]

As a parent of a student with some college bills left, it's intriguing. We were fortunate to be able to pay off the bulk of their expenses, but we wanted them to have some skin in the game too. 

For other kids? This could be a boon (see below)

But would this $$ be better spent elsewhere or not at all? I'm torn on it. 

I'm hoping this is a good discussion and not a bitter one

[Guest]

Biden Could Cancel $10,000 Of Your Student Loan Debt: Here's What We Know So FarHanneh GundersenPresident Joe Biden’s student loan proposals have garnered national attention — especially his promise to forgive $10,000 of federal student loan debt for borrowers as part of pandemic relief measures.
This promise, part of the Biden Emergency Action Plan to Save the Economy, would affect only borrowers with federal student loans.
Here’s what you need to know about his proposal and how it could impact your student loan debt.
Biden’s plan could alleviate debt for the majority of borrowersStudent loan debt continues to grow in the United States; the most recent statistics from MeasureOne report a total of almost $1.6 trillion in outstanding student loans, 92 percent of which are federally owned.
From free or reduced college tuition to revised income-driven repayment plans, Biden’s potential policies could radically change student loan borrowers’ financial picture.
In addition to these more systemic changes, Biden has also suggested more immediate relief. One measure proposed in Biden’s Emergency Action Plan would grant all federal student loan borrowers $10,000 or more in student loan forgiveness in order to promote economic recovery. Unlike the long-term forgiveness indicated in his other proposals, this student loan cancellation wouldn’t be conditional on service.
For some borrowers, $10,000 in forgiveness may seem like a small fraction. However, Forbes reports that over 60 percent of student loan borrowers carry a balance of $25,000 or less — meaning that $10,000 in forgiveness would effectively cancel most or all student loan debt for a majority of borrowers.
What’s more, a 2019 Bankrate survey found that 73 percent of millenials have delayed major life milestones due to their student loan debt. With $10,000 alleviated, those goals could be more attainable. To put it into perspective, $10,000 could pay for a car or serve as a down payment on a home.
Biden will likely avoid an executive orderHow likely it is that this measure will pass depends in part on the details of the policy, says financial aid expert Mark Kantrowitz. Sens. Elizabeth Warren and Chuck Schumer have also put pressure on Biden to increase the forgiveness amount to $50,000, so the details about how much forgiveness a student loan borrower could receive may change.
There’s been no indication that Biden will choose to forgo the path through Congress and enact an executive order. During a press conference on Nov. 16, when asked if an executive action would be necessary to achieve student loan forgiveness and if forgiveness figured in his plan, he responded with, “It does figure in my plan. I’ve laid it out in detail. For example, the legislation passed by the Democratic House calls for immediate $10,000 forgiveness of student loans.”
He deems immediate relief necessary, saying, “It’s [student loan debt] holding people up. They’re in real trouble. They’re having to make choices between paying their student loan and paying rent, those kinds of decisions. It should be done immediately.”
While Biden hasn’t made any definitive statements, House Democrats have called for an executive order to be enacted. On Nov. 16, Sen. Warren tweeted, “Student loan debt is holding back a whole generation from buying homes, starting small businesses, and saving for retirement – all things we rely on to grow our economy. Executive action to #CancelStudentDebt would be a huge economic stimulus during and after this crisis.”
Where is the money coming from?Biden’s plans to help alleviate the rising student loan debt may come with a big price tag. “Fundamentally, you have to get the money from somewhere,” says Kantrowitz. “So it’s either going to be taxing individuals, taxing businesses or increasing the deficit. Those are the three main sources.”
Ultimately, the question is whether the burden of at least a portion of the existing debt will be placed on the backs of taxpayers, says Mark Hamrick, Washington Bureau Chief and senior economic analyst for Bankrate. “That is a tricky question, and one which Biden and others will need to navigate if the matter is addressed.”
What’s next for student loans?In addition to Biden’s Emergency Action Plan, he has also proposed measures to forgive $10,000 in student loan debt per year (up to five years) for borrowers who complete national or community service, double Pell Grant values and lower the obligations of people on income-driven repayment plans.
It’s important to remember that Biden’s Emergency Action Plan, as well as his more long-term student loan plans, are only proposals at this point. For now, federal borrowers can continue to take advantage of the federal forbearance period, which President Biden hopes to extend through Sept. 30, 2021.
https://www.bankrate.com/loans/student-l...cellation/

[Guest]

The real problem is rising tuition costs. Maybe start there.  No reason that a college education should cost over $100,000. but tuition costs just keep rising.  It was cheaper for us to move out of state and pay the non-resident tuition in Hawaii than it was to go to a UC school in our home state (CA).  

We worked (and still do) saved, and are still paying tuition for my daughter, but it is roughly $30,000 a year.....not to mention that the last year and a half all these classes have been on line. Any break on tuition, given no need to keep the facilities at the campus up and running? NOPE.

meanwhile high schools dont even speak about trade schools, I guess we dont need mechanics, carpenters, plumbers, masons, electricians, iron / steel workers....

[Guest]

@Vanguard83 said:
The real problem is rising tuition costs. Maybe start there.  No reason that a college education should cost over $100,000. but tuition costs just keep rising.  It was cheaper for us to move out of state and pay the non-resident tuition in Hawaii than it was to go to a UC school in our home state (CA).  

We worked (and still do) saved, and are still paying tuition for my daughter, but it is roughly $30,000 a year.....not to mention that the last year and a half all these classes have been on line. Any break on tuition, given no need to keep the facilities at the campus up and running? NOPE.

meanwhile high schools dont even speak about trade schools, I guess we dont need mechanics, carpenters, plumbers, masons, electricians, iron / steel workers....

I wish I had seen this thread before I wrote my little ode to education in the min wage thread.  i absolutely agree,  community colleges and trade schools should be the first thing kids are pointed towards... and also the boards of regents needs to be looking at programs that can be moved out of 4 year universities and filled through community colleges and trade schools.   I honestly dont care if my kids math teacher has 10 credits of medieval music appreciation studies,  i doubt that will make him/her better equipped to make my kid understand quadratic equations.

[Guest]

Everyone was watching Lacey during this shot, I'm certain of that...

[Guest]

@purplefaithful said:
As a parent of a student with some college bills left, it's intriguing. We were fortunate to be able to pay off the bulk of their expenses, but we wanted them to have some skin in the game too. 

For other kids? This could be a boon (see below)

But would this $$ be better spent elsewhere or not at all? I'm torn on it. 

I'm hoping this is a good discussion and not a bitter one

i would like to see some help to the kids that stuck it out and graduated,  or at least ones that maintained a decent GPA while they were in school.  I dont see a benefit from helping out students that went to college to party.... and there are a lot of those.  I know lots of kids with 4 year degrees that never intended to go into the conventional work force,  their plans were to party for 4 years and then go back to the family ranch/farm and take over for dad some day.

[Guest]

@JimmyinSD said:

@Vanguard83 said:
The real problem is rising tuition costs. Maybe start there.  No reason that a college education should cost over $100,000. but tuition costs just keep rising.  It was cheaper for us to move out of state and pay the non-resident tuition in Hawaii than it was to go to a UC school in our home state (CA).  

We worked (and still do) saved, and are still paying tuition for my daughter, but it is roughly $30,000 a year.....not to mention that the last year and a half all these classes have been on line. Any break on tuition, given no need to keep the facilities at the campus up and running? NOPE.

meanwhile high schools dont even speak about trade schools, I guess we dont need mechanics, carpenters, plumbers, masons, electricians, iron / steel workers....

I wish I had seen this thread before I wrote my little ode to education in the min wage thread.  i absolutely agree,  community colleges and trade schools should be the first thing kids are pointed towards... and also the boards of regents needs to be looking at programs that can be moved out of 4 year universities and filled through community colleges and trade schools.   I honestly dont care if my kids math teacher has 10 credits of medieval music appreciation studies,  i doubt that will make him/her better equipped to make my kid understand quadratic equations.

Absolutely agree that a # of kids should be spending a couple years in a community college...Either for saving $ and/or because they are not yet ready to handle the rigors, demands and self disciplines required right out of high school. They're just too immature still. 

[Guest]

more community colleges would help with costs as well,  I was able to live at home while attending the local school ,  even though I likely drank up most of the savings,  i got my associates degree for a fraction of what 2 years at state would have cost me and if I had wanted to continue on for my bachelors or masters,  most all of my credits would have transferred so i really was way ahead of those that headed right to USD or SDSU,  who after 2 years had nothing to show for their expenses and efforts.

I would like to see more programs set up to start at local CCs and then be able to carry to the larger schools.   If a kid wants to be a doctor,  have them start at the CC level and see if they can get an RN degree first,  kind of dumb for them to get through 2-3 years of college and then find out they wont have the aptitude for the health field.  My daughters RN program told all enrollees that they see 50+% failure rates after the first semester of the first year.  They weed out the weak right away.  Most of those kids dont drop out of school,  they simply transfer to another medical related field with easier course loads like dental assisting or other... they still come out with a degree that will put them to work and making a living wage.

[Guest]

State of TN took our lottery money and instead of buying a stadium and giving art grants out pays for the first two years of Tech college if you maintain better then a C average. If youre on the four year plan you can get the bulk of your BS requiremet classes knocked out on the states dime or can go into a trade for free. 

You know....but we’re a bunck of hicks here

[Guest]

@Vanguard83 said:
The real problem is rising tuition costs. Maybe start there.  No reason that a college education should cost over $100,000. but tuition costs just keep rising.  It was cheaper for us to move out of state and pay the non-resident tuition in Hawaii than it was to go to a UC school in our home state (CA).  

We worked (and still do) saved, and are still paying tuition for my daughter, but it is roughly $30,000 a year.....not to mention that the last year and a half all these classes have been on line. Any break on tuition, given no need to keep the facilities at the campus up and running? NOPE.

meanwhile high schools dont even speak about trade schools, I guess we dont need mechanics, carpenters, plumbers, masons, electricians, iron / steel workers....

I would ask why college education is so outrageously priced?  And I would say that has to be answered before we get the government to fund even more of it.

We have 2 college graduates, another on the way in a year.  We also have two adults that are into the manual labor, having worked the oil field and now in construction.

2 of the college kids started local and basically had half of their college done before graduating high school.  They did the dual enrollment at the community college and had their associates before moving on to the state school.  Our other had a very specific major, music technology and went out of state for that reason.  But he worked his ass off getting grants, scholarships and such.  He had a job lined up, signed an offer letter and all, but the lock downs crushed that company and he is still looking.