The Student Loan Forgiveness Act of 2012

[utvol23]

Is this bill only for those that will borrow int he future or does this roll back?

I graduated undergrad debt free. Borrowed almost 250K for medical school and that has now grown to almost 300K with an outrageous interest rate of 6.8-8.5%.

 

[crcballer55]

Originally Posted by oidreez

what about lawyers, doctors, engineers etc? it's always easy to tell someone "well they should have went to a community college first"

Engineers can get a good paying job with only an undergraduate degree from a public university.

Regarding Doctors & Lawyers? About 25% drop out after their first year leaving them with tens of thousands in loans they don't have the qualifications to pay back quickly. A good deal more aren't able to stay in the profession long enough to make it pay off. Just because you got a degree in a certain area, even if it is a professional arena, doesn't mean you'll be good enough to stay in that field. You would be surprised at the number of attorneys who love law, but aren't good enough sales people to attract clients into their office.

Once again, in order to make school more affordable, we need to cut the amount the Federal Government allocates to upper education. The more they throw at schools, the more inefficient the institutions become because there is a seemingly endless supply of money they can access to pay for pet projects and needless upgrades to the campus.

Let's also not forget that just because someone says that you should go to school, get an education, and get a good paying job doesn't mean that it's true. People thought the same thing about housing too and look what happened when the money dried up. The same WILL happen to education too.

 

[wr]

The problem which is being skated over is how expensive school is nowadays. People on here petitioning to make it easier to pay bills off. If the bill wasn't so high in the first place, nobody would even be worried about this.

If you see that student debt has surpassed credit card debt, that really means something. They also made it to were student debt can't be written off during a bankruptcy. It means the school business got up on game and did the same thing the real estate market did before it crashed. It gave out financing and credit to anyone on inflated home properties. The cost of education is extremely inflated and also at the cost of receiving less of actual education ( considering the teaching model which is outdated is as well). Only thing people are learning is how to juggle debt.

The government doesn't pay it's bills. Why are the poor the only ones doing what's supposedly right?

To all the folks out there who paid their bills on time and feel as if they pulled themselves up by he bootstraps, congratulations to you. But just because you did what you did does not take away from the fact the system is inherently flawed and needs restructuring.

 

[moonman818]

Originally Posted by Wr

The problem which is being skated over is how expensive school is nowadays. People on here petitioning to make it easier to pay bills off. If the bill wasn't so high in the first place, nobody would even be worried about this.

If you see that student debt has surpassed credit card debt, that really means something. They also made it to were student debt can't be written off during a bankruptcy. It means the school business got up on game and did the same thing the real estate market did before it crashed. It gave out financing and credit to anyone on inflated home properties. The cost of education is extremely inflated and also at the cost of receiving less of actual education ( considering the teaching model which is outdated is as well). Only thing people are learning is how to juggle debt.

The government doesn't pay it's bills. Why are the poor the only ones doing what's supposedly right?

To all the folks out there who paid their bills on time and feel as if they pulled themselves up by he bootstraps, congratulations to you. But just because you did what you did does not take away from the fact the system is inherently flawed and needs restructuring.

 

[703 hwy]

Everything in America is overpriced. That's where the problem starts.

 

[wr]

Originally Posted by 703 Hwy

Everything in America is overpriced. That's where the probably starts.

If we legalized all drugs, the price would drop to dirt.
If education was free, there would be no need to pay to learn anything. Learning incentives would be based on real goals rather than monetary.

etc....

Most stuff we pay an arm and a leg for is actually not worth much at all. 

I mean just sit back and really think about the people that make a lot of money in the world. Like drug kingpins, and banks. The products they specialize in are essentially worthless. 

You got people controlling the world selling paper and powder. Pieces of paper and some damn powder!!!

 

[will0827]

Im all for people pursuing and going after their dream careers, but in this day and age i believe people really have to take deeper consideration into what they want to do and be more realistic. You hear alot of people say i want to do x because i could make y every year, but rarely do see people take into consideration if that field is even in high demand. While their are alot of people that are blessed with having money and can take a chance at getting a degree in something and having it not work out for them, alot of people arent and they are the ones that have to do that extra research before they make the final desicion and taking out a loan and going after a career. And although there are no guarantees at all after you graduate no matter what you decide to pursue, taking that little bit of time to resource your desired field and weighing your options properly can help you make a much better decision then relying on i could make x amount a year.

 

[la lakers 8]

Signed. I'll be closely watching this issue. I e-mailed all my fam and telling all my people bout it.

 

[dkjordan23]

our country cannot afford this. We are currently $15.5 TRILLION in debt as a country. This number is rising daily, further deteriorating the value of the dollar and hurting our economy. Stop concentrating on how this loan forgiveness will benefit you in the short run and think about how it will hurt us all in the long run. (BTW, im a student and will have $40,000 in loans to pay off when i graduate.)

 

[8tothe24]

Seeing that the U.S. bailed out the auto and housing industry; I say that after we get our free education, we should be given a free house and free Chevy.  Then we would be educated, have a house to raise an "American" family and a car to get to work... then we could be really useful to society. /sarcasm

This is going to go down in a fireball just like the OWS movement.

I think the line between rights and privileges in this country is getting confused.  You have a right to have access to an education, you don't have a privilege to a free education.  I have the right to buy a Ferrari if I have the privilege of having enough money.

 

[wr]

Originally Posted by dkjordan23

our country cannot afford this. We are currently $15.5 TRILLION in debt as a country. This number is rising daily, further deteriorating the value of the dollar and hurting our economy. Stop concentrating on how this loan forgiveness will benefit you in the short run and think about how it will hurt us all in the long run. (BTW, im a student and will have $40,000 in loans to pay off when i graduate.)

Loan forgiveness is a drop in the bucket compared to what this country waste it's money on daily.  How much do you think a missile cost? This country flies planes loaded with billions of dollars cash around the world to "stimulate economies". Looses some of them from time to time too. 
Plus after about ten years of consistent payment, the person in debt has probably already paid over the amount of principle owed on the loan, but most of that money is gone towards interest, (paying for the loan).  Plus these companies can settle their books by taking a loss and getting the money back in some other form.  

The economy will not collapse if people don't pay their student loans back in full.

If anything it's all these bankrupt mega corporations you should be worried about. The ones who get millions in financing, go bankrupt so as not to pay their debts, then start another company soon after with another name to do the same thing. Never actually using their own money, but failing with everyone else money.  These are your people who hang around washington and snatch up money before people even know about it. 

 

[MaxP_3]

This thread shows how the world is set up for a lot of people to fail. Im not going to elaborate but I will expand on an argument I had with a co worker. Basically he was saying he does not know why the "hood" and "poor people" (all race) exists. Basically making it sound like everyone was on equal ground. He said "All you have to do is go to college" but what about that poor kid that had to take out loans? And in this economy not every one is coming out with a job. This is help alleviate a lot of people's financial woes. Not only that but allow a lot of people after 10 years to contribute to an economic revival. Stop being shallow minded and "Oh I had to pay so why doesn't he". That just looks bad.

 

[hankmoody]

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.

 

[8tothe24]

Originally Posted by vcof2005

This thread shows how the world is set up for a lot of people to fail. Im not going to elaborate but I will expand on an argument I had with a co worker. Basically he was saying he does not know why the "hood" and "poor people" (all race) exists. Basically making it sound like everyone was on equal ground. He said "All you have to do is go to college" but what about that poor kid that had to take out loans? And in this economy not every one is coming out with a job. This is help alleviate a lot of people's financial woes. Not only that but allow a lot of people after 10 years to contribute to an economic revival. Stop being shallow minded and "Oh I had to pay so why doesn't he". That just looks bad.

You can get out of a State College in CA (i.e. the sciences) for about $30-40k in loans and get a job where you could pay that back in 5-10 years.  Now that is assuming that you get a degree that employers are looking for and that you apply yourself to be successful in the university environment.  That means, no Philosophy major, no Ethnic Studies major, no Art History major, no Basket-Weaving major; and use your brain, don't get a Liberal Arts degree planning to be a teacher when you full well know there aren't any jobs out there for you.  And if you decide to go to law school - well you only deserve the disappointment that you didn't prepare yourself for.  Because you are right there are no jobs.  And just like you aren't privileges to an education, you aren't privileged to a job.  Kids are too coddled by their parents now and are not prepared for the real world- it's cruel my dude. 

You know, maybe pick up a part time job, cut out the partying and actually go to school for what you are supposed to be there for.  And because you're right again, not everyone is at equal grounds.  You know what you do, work harder.  Work harder- that is something you don't see much in kids today.  More people graduating, more competition- employers can pick the best of the best.  It is up to you to work hard, get the grades, actually learn and master your subject as well as market yourself.  And you know what, you'll understand why the cats on here are saying "I did it so, why can't he."

"Shallow Mindedness" is the lack of foresight to all the potential problems this would cause.  You gotta take the "emotion" out of rational thinking and realize this will never succeed.

The real scam is that you feel you need to go to college to succeed.  There are other things out there such as trades (i.e. electricians, plumbers, contractors etc.).  Quite often, these are the wealthiest people in your neighborhoods.  We all can't be doctors and astronauts.

 

[kpingol27]

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.

*insert rock clapping gif here*

 

[jordan supreme]

Originally Posted by Vendetta

The only part I agree with is capping the interest rate. Other than that there's no reason to bail people out for their own decisions.

this would solve a lot of problems

 

[dkjordan23]

Originally Posted by Wr

Originally Posted by dkjordan23

our country cannot afford this. We are currently $15.5 TRILLION in debt as a country. This number is rising daily, further deteriorating the value of the dollar and hurting our economy. Stop concentrating on how this loan forgiveness will benefit you in the short run and think about how it will hurt us all in the long run. (BTW, im a student and will have $40,000 in loans to pay off when i graduate.)

Loan forgiveness is a drop in the bucket compared to what this country waste it's money on daily.  How much do you think a missile cost? This country flies planes loaded with billions of dollars cash around the world to "stimulate economies". Looses some of them from time to time too. 
Plus after about ten years of consistent payment, the person in debt has probably already paid over the amount of principle owed on the loan, but most of that money is gone towards interest, (paying for the loan).  Plus these companies can settle their books by taking a loss and getting the money back in some other form.  

The economy will not collapse if people don't pay their student loans back in full.

If anything it's all these bankrupt mega corporations you should be worried about. The ones who get millions in financing, go bankrupt so as not to pay their debts, then start another company soon after with another name to do the same thing. Never actually using their own money, but failing with everyone else money.  These are your people who hang around washington and snatch up money before people even know about it. 

i agree with everything you said with regard to ridiculously over the top military spending and bailing out corporations. But I do not believe that we should just disregard the "drop in the bucket" spending simply because its not up to par with some of the other spending the federal government participates in. I don't believe we should disregard one "lesser evil" simply because of the fact the there are "greater evils" out there. 

 

[yeeitsdamon]

Signed all for it

 

[mattut]

Originally Posted by jordan supreme

Originally Posted by Vendetta

The only part I agree with is capping the interest rate. Other than that there's no reason to bail people out for their own decisions.

this would solve a lot of problems

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"

 

[8tothe24]

Originally Posted by MattUT

Originally Posted by jordan supreme

Originally Posted by Vendetta

The only part I agree with is capping the interest rate. Other than that there's no reason to bail people out for their own decisions.

this would solve a lot of problems

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.

 

[crcballer55]

Originally Posted by Wr

Originally Posted by dkjordan23

our country cannot afford this. We are currently $15.5 TRILLION in debt as a country. This number is rising daily, further deteriorating the value of the dollar and hurting our economy. Stop concentrating on how this loan forgiveness will benefit you in the short run and think about how it will hurt us all in the long run. (BTW, im a student and will have $40,000 in loans to pay off when i graduate.)

Loan forgiveness is a drop in the bucket compared to what this country waste it's money on daily.  How much do you think a missile cost? This country flies planes loaded with billions of dollars cash around the world to "stimulate economies". Looses some of them from time to time too. 
Plus after about ten years of consistent payment, the person in debt has probably already paid over the amount of principle owed on the loan, but most of that money is gone towards interest, (paying for the loan).  Plus these companies can settle their books by taking a loss and getting the money back in some other form.  

The economy will not collapse if people don't pay their student loans back in full.

If anything it's all these bankrupt mega corporations you should be worried about. The ones who get millions in financing, go bankrupt so as not to pay their debts, then start another company soon after with another name to do the same thing. Never actually using their own money, but failing with everyone else money.  These are your people who hang around washington and snatch up money before people even know about it. 

It would actually take 12 years just to break even on a 6% loan. You're also failing to account for the fact that they're not in the business of breaking even. They use the profits you pay them to not only repay themselves but to reinvest into more loans so they can make more money. Capping profits hasn't reaped any benefit in the past. Nixon tried price caps in the 70's to fight inflation with disastrous results.

Besides, if someone doesn't pay back their loans for some reason the government will pay the outstanding balance to the lending institution anyways. What's the difference between repealing the student loan BK law and this law? You're just playing musical chairs with the details and encouraging people to take out more loans that they will have no intent of paying back. It doesn't matter if our government wastes money in one area, that doesn't make it ok for them to waste more money in other areas because we deem it more of a moral good. Wasted money is wasted money no matter where it goes.

On a side note... what are these BK companies taking federal money that are reopening as other companies?

 

[wr]

I should say people behind the companies and not the company itself. A company is merely an instrument to conduct commerce.

 

[mojodmonky1]

Originally Posted by 8tothe24

Originally Posted by MattUT

Originally Posted by jordan supreme


this would solve a lot of problems

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?

 

[jordanxi45]

We're screwed regardless. That $15.5 trillion of debt will only go up. I really think they have no intention on paying any of it off. People seriously think the USA will be the greatest country in the world forever, if we keep on doing what we're doing - this country is going to fall straight on it's face in 20-30 years, probably even earlier..

 

[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.