On That Student Loan Forgiveness

[MechAg94]

New York Times column suggests 'death' as 'solution' to student debt after court strikes down Biden handout
https://www.foxnews.com/media/new-york-times-column-suggests-death-solution-student-debt-court-strikes-biden-handout

Among six methods Ron Lieber included to get rid of student loan debt, such as signing up for student loan forgiveness and filing for bankruptcy, he included that debt "dies with the person or people who take it on."

This option was given for students worried that the debt their loved ones took out for their schooling would pass on to them if those loved ones died. Lieber assured them it wouldn’t.

https://twitter.com/transscribe/status/1674805334357975040?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1674805334357975040%7Ctwgr%5E5700ba377cf75979b6309ef5046c56c17b0fae13%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.foxnews.com%2Fmedia%2Fnew-york-times-column-suggests-death-solution-student-debt-court-strikes-biden-handout

[WLJ]

New York Times column suggests 'death' as 'solution' to student debt after court strikes down Biden handout
https://www.foxnews.com/media/new-york-times-column-suggests-death-solution-student-debt-court-strikes-biden-handout

https://twitter.com/transscribe/status/1674805334357975040?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1674805334357975040%7Ctwgr%5E5700ba377cf75979b6309ef5046c56c17b0fae13%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.foxnews.com%2Fmedia%2Fnew-york-times-column-suggests-death-solution-student-debt-court-strikes-biden-handout

Up to your neck in debt? Perhaps today is a good day to die

[sumpnz]

I’d be shocked if they didn’t go after your estate.  I can’t imagine even (or especially) the feds not going after an estate if it was substantial enough to cover student loan debt.

As a general rule what you own must stand good for what you owe when you die.  If estate assets are insufficient to cover liabilities then the remaining debt dies with the debtor.  If there is an asset that normally would be sold to cover the debts of the estate that the heirs wish to retain then they have to either take responsibility for the debts or purchase the assets at fair market value from the estate.

[RoadKingLarry]

Unfortunately debt collectors often don't know or don't care about the Fair debt collection laws.
I personally know of two separate cases where a surviving relative, (both were adult children not living with their parent) was pressured by bill collectors to pay the debts of their deceased loved one that had died with essentially zero assets and significant debt.

[sumpnz]

Unfortunately debt collectors often don't know or don't care about the Fair debt collection laws.
I personally know of two separate cases where a surviving relative, (both were adult children not living with their parent) was pressured by bill collectors to pay the debts of their deceased loved one that had died with essentially zero assets and significant debt.

They (or at least their bosses) know.  But if they can pester/bully someone into paying, often by outright lying about the consequences if they don’t, they get more money than the nothing they should.

[JTHunter]

In Chicago - where I grew up - I assure you that is rarely the case. The politicians have found that the easiest way to avoid jail while lining one's pockets is to fund infrastructure projects with enormously inflated price tags and award the contracts to friends/extended families/campaign contributors. This is a GREAT way to convert public funds into private profits, and as long as those involved are somewhat discrete, the personal enrichment goes on . . . and on . . . and on.

It ain't limited to just $hicago.   

[WLJ]

Think Biden is going to stop? Guess again

The U.S. Department of Education announced Friday it "will begin notifying more than 804,000 borrowers that they have a total of $39 billion in Federal student loans that will be automatically discharged in the coming weeks."

"For far too long, borrowers fell through the cracks of a broken system that failed to keep accurate track of their progress towards forgiveness," U.S. Secretary of Education Miguel Cardona said in a statement. "Today, the Biden-Harris Administration is taking another historic step to right these wrongs and announcing $39 billion in debt relief for another 804,000 borrowers.

"By fixing past administrative failures, we are ensuring everyone gets the forgiveness they deserve, just as we have done for public servants, students who were cheated by their colleges, and borrowers with permanent disabilities, including veterans," Cardona added. "This Administration will not stop fighting to level the playing field in higher education."

Biden administration forgives $39 billion in student loan debt to more than 800,000 borrowers
https://www.foxbusiness.com/economy/biden-administration-forgives-39-billion-student-loan-debt-more-than-800000-borrowers

[Ben]

I wonder how this will affect the voting habits of those blue collar pro-union dem voters? Or maybe he'll toss a few tens of billions their way too.

It kinda makes me want to go out and slash $39 billion worth of GSA vehicle tires. Other than my taxes would be paying for that too.

[dogmush]

I wonder how this will affect the voting habits of those blue collar pro-union dem voters? Or maybe he'll toss a few tens of billions their way too.

It kinda makes me want to go out and slash $39 billion worth of GSA vehicle tires. Other than my taxes would be paying for that too.

I know Ben is kidding here, but I like throwing perspective on some of these fed.gov numbers every now and then.

There aren't $39 billion worth of GSA tires to slash.  According to GSA.gov they lease 656,494 vehicles in 2022 including Civilian agencies, the DOD, and the USPS.  Even if each tire was a preium $1000 tire, and you slashed every tire* on every GSA in the world, you'd only cost 7% of this newest loan bailout.

*spares excluded, as they are locked in trunks

[WLJ]

I know Ben is kidding here, but I like throwing perspective on some of these fed.gov numbers every now and then.

There aren't $39 billion worth of GSA tires to slash.  According to GSA.gov they lease 656,494 vehicles in 2022 including Civilian agencies, the DOD, and the USPS.  Even if each tire was a preium $1000 tire, and you slashed every tire* on every GSA in the world, you'd only cost 7% of this newest loan bailout.

*spares excluded, as they are locked in trunks

Got to include the "$500 coffee pot" handling fee

[Ben]

I know Ben is kidding here,

Yes, I was, Neil deGrasse Tyson of the fed.gov.

 

[WLJ]

Sneaking more in

Joe Biden told 813,000 more Americans that he has wiped their student loan debt on Tuesday, meaning the president has forgiven a total of $127 billion for 3.5 million borrowers.

The former students will soon receive an email from Biden notifying them that their debt has been forgiven - despite the fact that his plan to cancel $400 billion in debt was rejected by the Supreme Court in June.

The email - making clear that the help has come from Biden - read: 'Congratulations — your student loan has been forgiven because of actions my administration took to make sure you receive the relief you earned and deserve.'

Biden tells 813,000 more Americans he has WIPED their student loan debt: President has now forgiven $127 billion for 3.5 million borrowers - even though the Supreme Court sank his first bid
https://www.dailymail.co.uk/news/article-12802519/Biden-WIPED-student-loan-debt.html

[MechAg94]

Have any of you heard anyone in Govt suggest cutting the loan interest to 0% and/or forgiving the interest only?  Seems to me that would be a good way to relieve some of the pain without forgiving the debt itself.  I don't really like the idea of the FedGov profiting from loan interest on top of all the taxes.

[Ben]

Have any of you heard anyone in Govt suggest cutting the loan interest to 0% and/or forgiving the interest only?  Seems to me that would be a good way to relieve some of the pain without forgiving the debt itself.  I don't really like the idea of the FedGov profiting from loan interest on top of all the taxes.

I would have little heartache over that. It would be a good short term compromise to a broken system. I think a lot of people would find that acceptable, as it doesn't erase people's responsibility.

[WLJ]

Have any of you heard anyone in Govt suggest cutting the loan interest to 0% and/or forgiving the interest only?  Seems to me that would be a good way to relieve some of the pain without forgiving the debt itself.  I don't really like the idea of the FedGov profiting from loan interest on top of all the taxes.

How many votes does that gain for the dems which is the measuring stick this stuff is measured by?

[dogmush]

I would have little heartache over that. It would be a good short term compromise to a broken system. I think a lot of people would find that acceptable, as it doesn't erase people's responsibility.

Which is why it won't be done.  Not only does it not erase responsibility, which is the goal, many folks wouldn't have a problem with it, which would take away one of the topics to scream that "republicans are out to get you" about.

There's no fund raising or getting apathetic voters out in a compromise everyone likes.

[sumpnz]

Have any of you heard anyone in Govt suggest cutting the loan interest to 0% and/or forgiving the interest only?  Seems to me that would be a good way to relieve some of the pain without forgiving the debt itself.  I don't really like the idea of the FedGov profiting from loan interest on top of all the taxes.

I've been saying for a while that the Republicans are stupid for not having done basically that.  Still wrong, but would have been very savvy politically.  Which, of course, is why they didn't do it.

[sumpnz]

Sneaking more in

Biden tells 813,000 more Americans he has WIPED their student loan debt: President has now forgiven $127 billion for 3.5 million borrowers - even though the Supreme Court sank his first bid
https://www.dailymail.co.uk/news/article-12802519/Biden-WIPED-student-loan-debt.html

Article is short on details (shocker) but I'm betting this was forgiving loans under long standing programs.  Most such programs had a 1-2% success rate for people getting loans forgiven.  And often they would lose out for stupid reasons.  So if this was basically righting some of the things under those programs I'm not going to get tooooo worked up over it.

[dogmush]

I wouldn't get toooo worked up about it if there was any evidence at all that we were going to stop giving out these student loans that were going to end up unpayable.

Unfortunately the evidence seems to be we will accelerate giving out student loans that aren't able to be paid back.  People need to face the fact that many college degrees are not worth what they cost, and should not be encouraged.

[charby]

Article is short on details (shocker) but I'm betting this was forgiving loans under long standing programs.  Most such programs had a 1-2% success rate for people getting loans forgiven.  And often they would lose out for stupid reasons.  So if this was basically righting some of the things under those programs I'm not going to get tooooo worked up over it.

Yep, I read an article a little bit ago that it is related to the IDR repayment plan where loans are forgiven in  20 or 25 years of payments. Very few were approved due to inaction by the contracted student loan servicer companies.

Honestly past and present student loan servicing companies needed to be audited and investigated. Then make them pay for their errors.