The Student Loan Forgiveness Act of 2012

[Jordan8]

Signed

 

[wr]

[h1]...[/h1]

 

[8tothe24]

Originally Posted by MonStar1

I can't believe some you guys are against this.  Must be nice to have $.  If you had scholarships then props for being a good student, but its too many people in this country in serious debt.  

You really think every person in debt is a irresponsible person who made bad decisions or is bad with money?  What world are you living in?  Most of us were told if you go to college and get a degree you will get a job and be set to start a career aka the new american dream.  But the economy has failed us.  Too many educated people with job skills and not enough jobs.  The point of taking the loan was to be able to pay it back with your salary after graduation, not to work a job that doesn't require a degree and barely pay bills and your loan.  

To be against this is like calling minorities lazy.  Its a real "republican" type view to place blame on the people and not the state of the country. 

Everything lined out is your emotions and stereotyping others.

Debt is the society we live in.  We aren't going back to a cash based gold standard anytime in the future.  And you should be expected to strive for good grades and get any scholarships you can.  And if you don't then you go the loan route, if you really want that degree.  And you take that responsibility of that loan good or bad.  No one ever guaranteed your life is going to be peaches-and-cream.

It goes beyond bad decision making or being bad with money.  It is about fully thinking through your life decisions.  You can't just go on what people tell you.  You have to do your own research as to what you want to do, is it a wise decision based on many factors: economy, where you want to live, the life style you're trying to obtain, job/life satisfaction, work/life balance.  When it comes down to it, you have to man up and be responsible for yourself.

You are right the economy has failed us.  And the education system has failed us.  University here, university there, schools are an in the economy of education.  They are going to tell you the good stuff and leave out the bad.  It is up to you to prepare yourself.  Further burdening our economy with society picking up yet another check because people now feel they shouldn't have to pay for their own education is absurd and economical infeasible.  And under the situation that you lose your job during an economic down turn, you have three choices:  suck it up and do work that you feel is beneath you or below your expertise and pay your bills... or... go out and fight for a job highlighting your qualifications for a given position... or... you sit around and feel sorry for yourself while racking up debt.

 Wrong!  The point of taking the loan out was to pay for an education that an individual chose to pursue.  Many people follow paths that they know will bury them in debt, just for their love of the subject matter.  The assumption is that you are going to get a job and pay it back, not what job you get.  The lender doesn't care whether you get a job at Denny's or IBM; they agreed to a contract, that a student/parent signs, agreeing to pay back money lent to an educational system.  Lenders aren't promising you a job, they're promising you to pay your educational bills (that you chose) in expectation that you will pay them back at a certain interest rate.

The take away here is that nothing is guaranteed in life and it is up to you to pursue your own destiny in life.  You make decision and are responsible for those decisions you make.  So, I disagree with you- responsibility is a very big factor.  And it must be considered before you put your name on that piece of paper.

 

[rexanglorum]

HankMoody wrote:

---

Detractors, please think long-term. Managing the student loan issue now will be far cheaper than the long-term problems of a lost generation. If you don't think that outcome is possible, please read the recent Esquire piece "The War on Youth" for a brief look at the state of young Americans today.

Young adults with college education are the meekest group in American politics. Every other groups has much more costly demands and they are much more vocal about them,

- Retired Americans demand that Social Security and medicare payments never be means tested or reduced, even for very asset rich seniors.

- Middle aged Americans want the same payouts.

- Blue collar workers demand tariffs on imported goods, thus impoverishing other Americans so they can prosper.

- Public sector Unions want to raise State taxes so they can keep up their unsustainable pensions and benefits.

- Everyone in Real Estate, home owners, agents, home builders and developers want bailouts and easy money policies to push up demand for housing.

- Wall Street Bankers demanded and received a massive taxpayer funded bailout, a virtually unlimited line to the US treasury, zero percent interest rates (which are guaranteed profits since they can buy up US treasuries, which yield about two percent) and the ability to get rich while impoverishing Americans through inflation and the crowding out of sources of capital for productive investments.

It seems like young people who are earning or who have earned college degrees are told to embrace rugged individualism and to accept the idea that a bachelors degree is the bare minimum for obtaining work; to do multiple internships and then to accept any pay and number of hours and to do so with out any complaint.

 

[fac3 tak30v312]

Why is it that you don't hear this sort of nonsense from the nations that actually provide an education and not monetize it or make it into a for profit industry? Either way it sounds like class warfare in here

Originally Posted by crcballer55

Why don't lawmakers propose cutting educational loan funding instead? Ever since the Federal Government started subsidizing education the costs have outpaced inflation by over double. While I do feel sorry for many who unsuspectingly signed themselves into financial slavery, at some point we need to stop this mentality of bailing out those who got themselves in trouble (Banks, Homeowners, Students, Car Companies, etc.), otherwise we're going to continue promoting illogical behavior because there is no moral hazard.

What other choice do they have, if what they seek is a middle class lifestyle, that can only be obtained through a college education for most? The second part of your argument completely invalidates the first, because there is a huge difference between giving a billion dollar empty check book to a bank, than the government essentially attempting to patch a leak it helped create, instead of solving the problem and stopping the money grab. As far as I see it the amount that the House Rep included in the bill most likely is the  average adjusted cost of an education when including inflation, meaning the amount you're currently paying for a four year education at say LSU minus the $45,000 equals to about the amount you should pay in today's money for an education at LSU without the crazy inflation.  Instead of all your condemnation and finger wagging, how exactly would you all fix the problem ?

 

[shatterkneesinc]

nah
they get a free gamble and i dont
foh

 

[essential1]

I love how there is always an elitist view that people want something for nothing... The problem is the tuition has gone up immensely.. Funding has gone down immensely... Credentials to get into a job have gone up.. And starting wage, and employment of college graduates has gone down..

And just because you do well in school.. Does not mean you get a scholarship.. I've applied for them.. I'll be graduating Magna Cum Laude, .03 GPA short of Summa Cum Laude.. And was only able to get a measly percent or two of full tuition in scholarships.

And TAP was $500 of help per semester (which would be used mostly on supplies for the semester and books), which was dropped to $250...

Every scholarship I got looked over.. 1. Because I haven't done "enough" outside of school meaning enough volunteer work or NON-PAID INTERSHIPS, or luck of the draw, which is how a lot of scholarships work..

The reason that people complain about loan debt is because it keeps getting worse, and only points to it being even tougher in the future.. If all of the factors I stated at the beginning stayed stagnant, it would not be nearly the issue it is today.

Now if you want to succeed and be looked at even in many starting jobs you must go to Grad School, which is more $. And soon a doctorate degree will be the only distinguishing factor... That is even more $..

Or have experience, which = non paid internships, which kind of hurts your chances of working to pay for school.

Most people of course would want to go to school for free (you're an idiot, if you wouldn't).. But at the same time, most people actually don't mind having to pay what they invested in themselves, and neither do I.. But when Tuition is up,  Federal Funding is down, Scholarship funding is down, starting salary is down, recent college graduate employment is down, qualifications are up, interest is up... It isn't that people want to get off free.. It is that their investment, even if they busted their %$* while in school puts a burden of not being able to even obtain a life where you are not paycheck to paycheck is impossible.. And the debt is making it hard to even consider starting a family.. Or dissuades people from going further with their education even to better improve their prospects because they just can't afford it.

I resent the fact that if you don't work 80 hours outside of school to pay off your loans, and end up in a lot of debt you were "lazy". I work 2 part time jobs, and try to tutor on occasion. I can barely wipe my !$$ with that money.

Because one person does it, doesn't mean everyone can or has the luxury.. I busted my !$$ in undergrad.. I even developed anxiety order because of how meticulous I became about school.. And you are calling it laziness... @$*$ OUTTA HERE..

 

[celticnation34]

I dont understand how someone can be against this. You went to school and paid off your tuition, congratulations, not everyone is so fortunate. I got a partial scholarship and work 2 jobs and still am going to graduate with a fair amount of debt. With the job market like it is, it is not a stretch to say that the interest will just gather while I am scraping by trying to pay the minimum balance. Those "economy boosts" that every politician is talking about are wasting money, if they took that and paid of student loans then that would be a real boost to the economy. Think of how much money that would put back into people pockets to be used elsewhere.

 

[crcballer55]

Originally Posted by fac3 tak30v312

Why is it that you don't hear this sort of nonsense from the nations that actually provide an education and not monetize it or make it into a for profit industry? Either way it sounds like class warfare in here

Originally Posted by crcballer55

Why don't lawmakers propose cutting educational loan funding instead? Ever since the Federal Government started subsidizing education the costs have outpaced inflation by over double. While I do feel sorry for many who unsuspectingly signed themselves into financial slavery, at some point we need to stop this mentality of bailing out those who got themselves in trouble (Banks, Homeowners, Students, Car Companies, etc.), otherwise we're going to continue promoting illogical behavior because there is no moral hazard.

What other choice do they have, if what they seek is a middle class lifestyle, that can only be obtained through a college education for most? The second part of your argument completely invalidates the first, because there is a huge difference between giving a billion dollar empty check book to a bank, than the government essentially attempting to patch a leak it helped create, instead of solving the problem and stopping the money grab. As far as I see it the amount that the House Rep included in the bill most likely is the  average adjusted cost of an education when including inflation, meaning the amount you're currently paying for a four year education at say LSU minus the $45,000 equals to about the amount you should pay in today's money for an education at LSU without the crazy inflation.  Instead of all your condemnation and finger wagging, how exactly would you all fix the problem ?

Don't take my argument as finger waging. On the contrary, I'm working with several families right now to help them eliminate their debt loads.

I think I stated pretty clearly how I would fix the problem. Turn off the tap of Federal funding to schools and watch the cost of school go down and efficiency increase. Since that's completely counter to current thinking and any public figure who dares to propose such a measure would be labeled an elitist (like I was above) it won't have any chance of success any time soon.

I believe that a traditional upper education as the key to becoming middle class will become increasingly irrelevant as the ability to gain knowledge online continues to grow and people are able to start their own businesses at a relatively low cost.
We're already seeing it start with the over-saturation of BS/BA degrees in the market. The job market rewards those who are creative and think outside the box more-so than those who can produce a piece of paper stating they spent 4 years learning a craft.

 

[villansfinest]

My loan will be paid off in two years.

I graduated in spring of 2006.

I went through trials and tribulations. I was buying a few pairs of shoes a month when i started. now, i can't remember the last pair i bought. you see, i learned even more about the world AFTER i graduated from college. my loans became my priority. they got paid first. i made sure that i always had enough to pay my loans. you're worried about making minimum payments and barely being able to pay down the interest each month? that's how loans work. don't want to pay as much interest? negotiate a better deal up front, or make additional payments during repayment. to those of you who say that people who have paid off their loans are fortunate? you mean lucky? LUCK will play no part in me being debt free. I will only become debt free by being intelligent, patient, and hard working. 

you may not have known the consequences of your actions when you signed to borrow the money, but this is how you find out.

your actions do have consequences. 

you should not ever count on pressing a giant reset button to get rid of your previous mistakes, because i will be fighting to not press that reset button so that my success can live on.

 

[dathbgboy]

Seems to me the system is slowing trying to make post-secondary education for the affluent again. Cost of education is ridiculous. Every year colleges and universities raise the price of tuition to "help offset costs" meanwhile u have governments cutting back on grant funding. And the funny thing is is that the education bubble will never burst. Companies inadvertently force ppl to go to school w/ false hopes of getting a better job only to snub em in the end and say go get another degree and I'm pretty sure you'll get a good job.

We all want the American dream whatever it is to u, and unfortunately we are all victims of money hungry exploits while trying to pursue that dream

 

[crcballer55]

Originally Posted by Dathbgboy

Seems to me the system is slowing trying to make post-secondary education for the affluent again. Cost of education is ridiculous. Every year colleges and universities raise the price of tuition to "help offset costs" meanwhile u have governments cutting back on grant funding. And the funny thing is is that the education bubble will never burst. Companies inadvertently force ppl to go to school w/ false hopes of getting a better job only to snub em in the end and say go get another degree and I'm pretty sure you'll get a good job.

We all want the American dream whatever it is to u, and unfortunately we are all victims of money hungry exploits while trying to pursue that dream

Although the affluent thing is true, it's more an issue of misplaced priorities. States aren't willing to cut back nonessential programs in place of funding education. People have a hard time believing that California used to offer world class K-12 education & a free post secondary education that was the best in the world. Now? It's ranked 48 in K-12 education and the cost of the UC system is increasing at 15%/yr.

The bubble will burst no matter what people say if the current trend continues. Either companies will be forced to lower their standards and/or move the jobs overseas to more qualified applicants.

 

[mattut]

Originally Posted by Mojodmonky1

Originally Posted by 8tothe24

Originally Posted by MattUT

Agreed like said before ppl end up paying alot more than the original loan about due to the interest rate. Im 99% sure  there is probably no way of getting around an interest rate, but imagine how much of a difference it would make if there wasn't an interest rate. Or maybe even a plan in place to not charge interest to those who are paying at least 10% of income towards loans. Maybe an higher interest rate is only given after a LONG period of missed payments. 
The way I see it is this money never really actually exist. Its not like a bank really handed over UT the 10k I borrowed. More so its not like that bank even notices it is gone, so why have crazy interest rates on money loaned out for things such as education. Just when your time is done pay back what you "borrowed"

, unfortunately people that want the handouts, always, I shouldn't say always- but quite often see it this way.  And it is quite similar thinking that made people want houses they couldn't afford just 5-10 years ago.  Universities don't pay pretend money to the staff, insurance companies, construction companies, utilities, contractors, etc.

As for an interest rate, the banks are in it to make money, the schools are in it to make money.  There is this guise of social betterment being presented about the educational system; when in reality it is another "business and economy" of society.  If it wasn't, it would be like "old" generations, where not everyone got into college and those that did found it extremely hard to succeed.  The education market is going to be the next "bubble" to burst because people are not looking at this way, "what is this education going to do for me, is it really going to further my goals, is it the correct vehicle to achieve the goals I have set for myself, is it something that I am going to dedicate myself to, what will I do I if I don't achieve the success I planned for, what is my back up financial method to pay for myself and any debt I've incurred." etc, etc, etc.

@MattUT - you cant be serious.  Do you really have no concept of opportunity cost or time value of money?  Tell you what, lemme hold onto your money for 4 years, and then i will slowly pay back however much I borrowed from you over the course of 144 monthly payments.  Do you understand how ******ed that sounds?

Of course I understand people need to get paid and they're not going to get paid in thank yous and IOUs. And I don't think it's as cut and dry as I might have made it seem. And in all reality I might be some idiot with who can't grasp the idea, seriously. But there has to be some way to stop killing people with interest rates. And let me throw it out there that I took out one loan in college(10k), not because I needed it but because I was young and dumb and saw $$$$. Which never accrued interest in the first place so I've never had to deal with an interest rate. The way I looked at school was, well damn gotta pay for this so let me work a couple jobs and get it done. And I know it's not that easy for everyone but hearing people say they've been paying on UNDERGRAD loans for 30 yrs!?! That's crazy to me.I think the over all idea I would like to see looked more into is a small fixed interest rate for timely, sufficient payments.