Politically Biden wins, Republicans did not have a clear counter plan for the high cost of tuition. He will look like a hero to his base. I would start with getting rid off 501c status for all universities. Tax endowments. And if they charge a higher tuition rate than the average inflation of last 10 years, make them pay a higher progressive corporate tax rate. 2nd I would use the extra revenue to give companies a corporate tax break if they hire someone and help them pay student loans. Also the income based plans incentives people to keep their income low. They wont get married or keep filing married filing seperately. That system is broken. Lets incentives people to make more. I can go to school borrow 300K, become an engineer and make 80K or just work part time driving for UBER and let tax payers pay my student loan. This is a wrong setup. And schools know this so instead of charging 300K they can let the student borrow 400K and it has zero consequences to any university. This is actually worse than PPP loans
Supreme ct struck down free loans . Biden had zero authority to do
- Thread starter DonP
- Start date
Sorry to say, but there is a counter plan. Take the government out of the loan business and return it to private lenders.
While there are many moving parts to this problem, the main culprit was the introduction of government money and control into the equation. Under the guise of fairness and equality, the government took more and more control, and pushed out the private lenders. Loan amounts increased and the govt backed them. Students and universities only followed the incentives, increase the costs because the govt would pay.
Think about this, what private lender would loan a large amount of money without verifying the recipient's ability to repay? Yet because the federal government backs all of these loans, and controls the process, no one cares. Perverse economics and incentives.
US government already gives loan backing in many ways. You live in a house with a mortgage that was backed by implicitly by FNMA otherwise you would have paid a higher mortgage. SBA gives loans to many start up businesses, some fail and some are really fraud, but overall it works. We just bailed out Silicon Valley Bank so that the whole bitcoin industry can stay afloat. Our taxpayer money at work. If you take out the Fed out of student loan business, it wont really be better off. No one wants to lend to a 18 year old with no parents and assets, realistically all American universities would become 95% Chinese students who pay cash if we removed the US government backing. Also if you notice I said republicans did not have a counter solution. They just said Joe can not do this, which is true. But for Biden it is a win win situation. He delivered to his base that he is fighting for them. When Ronald Reagan became president republicans tied democrats for under the age 30 vote. Biden expanded the lead there last election. Now this group is clearly in Democrats pocket. Since this going to be more of a political compromise, Republicans have to find a solution that resonates with the under 30 crowd. I think offsetting tax credits for small business who hire students is a good way solution to a complex problem.
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Republicans? Finding solutions?? haha
Walthammy, you are mixing apples and oranges here. Yes, there is help with the mortgage, but with that there is an asset (home) backing it should there be a default. The SBA does not give out loans to everyone, they do evaluate creditworthiness and as a consequence, turn down many people. Your comment "no one wants to loan an 18 year old is also wrong. Many of us, including me/wife and siblings all obtained loans for school. We were nothing but 18-year-olds, in the mid 70's. Look, we can argue this all day long, which is not what I want to do. Just asking that you get your facts straight.
Lloyds of Lubbock
Guru
- 747
It's tough to find solutions when the other part creates so many problems.
Just look at a picture of a student protest for the cancelling college loans.
There are young people there who are not even out of college.
Maybe if the educational world was not so determined to have personnel pronouns shoved down your throat, they might have taken the time to explain what a loan is.
It is something you pay back with interest or you default.
Some students did get swindled by dishonest organizations and that should be looked at.
Taking $$$ that I paid taxes on and giving it tax free to some snowflake debtor (who is majoring Sanskrit poetry) is just buying a vote plain and simple.
Vote for us we will give you free stuff.
The first thing I learned in this business is, "there is no such thing as a free lunch".
Honestly both parties suck, neither one cares about the American public only about furthering the will of party.
Just look at a picture of a student protest for the cancelling college loans.
There are young people there who are not even out of college.
Maybe if the educational world was not so determined to have personnel pronouns shoved down your throat, they might have taken the time to explain what a loan is.
It is something you pay back with interest or you default.
Some students did get swindled by dishonest organizations and that should be looked at.
Taking $$$ that I paid taxes on and giving it tax free to some snowflake debtor (who is majoring Sanskrit poetry) is just buying a vote plain and simple.
Vote for us we will give you free stuff.
The first thing I learned in this business is, "there is no such thing as a free lunch".
Honestly both parties suck, neither one cares about the American public only about furthering the will of party.
whatyouwantfinally
Guru
- 524
You also won't get a mortgage if you're the financial equivalent of a kid borrowing 6 figures for an English degree. HUGE difference.
Same as above; less than half of SBA loan applications are approved. A business plan equivalent of "I'm getting a gender studies degree" will be rejected.
Just wrong. SO wrong.
Really? No one? Kids get credit cards and car loans, AND there have been private institutions issuing student loans with gov backing this whole time.
"Counter solution" to what? Why would they offer up another way of doing something (loan forgiveness) they don't think should be done in the first place?
"I'm fighting for you by making you a promise I knew I couldn't keep" may sound good to some. But people do get sick of being played.
There is more to elections than the under 30 crowd, for one. Two, it's already easy for students to find jobs. What needs to happen, at minimum, is strict limits to gov backed student loans ($0 would be ideal) and for them to be dischargeable in bankruptcy. We have whole court system specialized in determining who can actually afford to pay back what, we should be using it.
Best case would be for the SC to overturn the precedent from Griggs v. Duke Power Co. Way too many kids spend years and big $ to prove something to employers that could be proven with a simple test after high school.
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There, I fixed it for you.
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How much was your loan in 1975?
