Biden's administration absorb students from loan debt. - page 2.

knowngunman

sr. member

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Quote from: Spaceman1000$ on July 14, 2023, 09:45:23 AM

This are some of the government policies I sometimes applaud because it has a direct effect on cushioning of debt burden on the students, which some of them have been struggling to pay off.

I am not a citizen of US but I will commend the president's gesture to wave the debt for the students. Although, the policy to loan student money to complete their school is not necessary in the first place and I assume it to end in this way. Nigerian government has replicate the policy as well which to begins in September. full details here.

The point is, what student need is a working system that their future will be assured after graduation. The government should allow students and their parents to struggle for school fees while government employs them after graduation and not the other way round of giving them loan that they can not be able to pay off after graduation due to lack of job. By offering the loan will just inflate the number of jobless graduates in the street.

Provide a working system and not loan that you will continue forgiving. It's obvious, you either forgive or you arrest countless number of debtors.

so98nn

hero member

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I think I am with @stompix on this one. Just reading the whole thing gave me an anxious feeling about how are they even planning this stuff. You can't just go the market and absorb finances just like that. God dammit this is not saving the students but this is putting more burden on those peeps who are yet paying their taxes and are working hard for their lives. Those who are saying this is nothing and that is nothing, man this is how it gets piled up over a period of time and the pot of debts keep feeling. It's funny how casually this is being taken. Definitely, they are not students since most of the education loans start availing the interest after the student is qualified for the job. I mean that's a huge loss for the banking system. Now they will have to print more money out of thin air and speed up inflation. That is serious. It might look tiny budget but they keep playing this card for various schemes and everything rises with time. It's an uncalled burden, to be honest.

Gyfts

legendary

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39 billion is inconsequential to the U.S. economy considering how recklessly the U.S. government will spend trillions of dollars without thought, and subject them to exponential debt growth. Besides, they've sent Ukraine more than that in aid over the past year.

This is nothing more than a campaign tactic for Biden seeing as it's election time. The Supreme Court struck down his insane proposal of forgiving nearly 500B USD in student loans which would have allowed him to spend an unforeseen amount of money and circumvent Congressional oversight simultaneously. Not clear how he has the authority to forgive 39 billion -- assuming it's through executive action, all he did was essentially print 39 billion USD into the economy. Consider it an expensive campaign expenditure.

stompix

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Blackjack.fun

Quote from: robattfield on July 14, 2023, 09:58:55 AM

I'm not sure that the effect on the US economy, student loan forgiveness can boost consumption and boost shortterm economic recovery, as students will have more money to spend and invest in the future.

They are not students anymore!

Quote from: palle11 on July 14, 2023, 10:06:27 AM

This loan that has been forgiven is still going to be channeled into the economy one way or the other because ~~those students are going to be graduates~~

Again, just like the other guy, you have no idea what you're talking about and what this forgiveness is about!

Quote

"Borrowers are eligible for forgiveness if they have accumulated the equivalent of either 20 or 25 years of qualifying months."

If anyone is really interested in knowing why student debt is such a problem, and not just posting some dribble read the statistics here :
https://www.forbes.com/advisor/student-loans/average-student-loan-debt-statistics/

Especially this part:

Quote

Age group   Amount owed   Number of borrowers
50 to 61   $282 billion   6.4 million
62 and older   $98 billion   2.4 million

Eternad

hero member

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This students can contribute on the governement through their taxes for their life time. I think this move is really good in long term since this student will surely get their job once they already graduated. It’s better than some politician pocketed government budget for their own good without any economic benefits for their country.

Here in PH, There’s a law here which you can have a free education up to college by enrolling on state universities. I knew that education system of US is very expensive. Just trying to emphasize that a country can focus on helping students with their college fees so that they can have work faster when they graduated.

palle11

sr. member

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This is a good gesture for the Biden`s administration. It is far better than forgiving those who have loothed the public wealth. Some government have mistaken priority and they decide on policies that won't add value to the economy. This loan that has been forgiven is still going to be channeled into the economy one way or the other because those students are going to be graduates that will contribute to the economy and those who want to start up a small business can use the money that would have been used to repay the loan to start the business.

It is a good decision but may not be unconnected with the forthcoming election because politicians know that the largest voting population is the youth and so they focus to win them over during electioneering season.

robattfield

full member

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I'm not sure that the effect on the US economy, student loan forgiveness can boost consumption and boost shortterm economic recovery, as students will have more money to spend and invest in the future. But be aware of the fact that this can have a longterm negative effect, by creating a signal that the loan is forgiven, leading to an increase in the value of student loan debt in the future.
And the story that they may be good once but they have done bad many times and not entirely sure of their machinations after that, but honestly I am not a fan of the current US and Biden administration, With a new election coming up, it could also be part of a plan to gain public confidence.

Spaceman1000$

sr. member

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Merit: 270

The President Joe Biden's administration has forgiven students that have outstanding students loans they haven't paid.
This forgiveness runs into about $39 billion in student loan debt to more than 800,000 borrowers.
This gesture which I describe as one the best gestures this administration has done.

This are some of the government policies I sometimes applaud because it has a direct effect on cushioning of debt burden on the students, which some of them have been struggling to pay off.

To a large extent, it shows the administration has humane Face. This will really go a long way in relieving some of the students past and present that are indebted.
What do you guys think about this news from the department of Education and what effect can this have on the US economy.
https://www.foxbusiness.com/economy/biden-administration-forgives-39-billion-student-loan-debt-more-than-800000-borrowers?intcmp=tw_fnc

Topic: Biden's administration absorb students from loan debt. - page 2. (Read 175 times)