Canceling Student Debt

Been reading a little bit about Bernie Sanders and Elizabeth Warren (and every democratic candidate apparently), wanting to forgive students loans.

Does anyone think is a good/bad idea?

I see the good in that it would help people get out of debt, and give them a better life.

Personally, I think it's a bad idea. Would cost too much money from the government/taxes, and I believe people would just find other ways to go into debt.

Comments (58)

Jun 24, 2019

bad idea

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Jun 24, 2019

bad idea. you are correct that people would just find other ways to go into debt. people need to learn from their mistakes, and they will never learn if someone is constantly cleaning up their mess and bailing them out. I paid off all $50,000 of my student loans and it was very painful to see that money flying out of my wallet every month. the pain of losing that money has stuck with me through the years and you can bet I would never allow myself to accrue that much unsecured debt ever again

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Most Helpful
Jun 24, 2019

It's super regressive and should be strangled in the womb. Just using Democratic talking points alone (not even conservative thinking):
* Doesn't help the most needy in population (why not fund trade schools or something?)
* Rewards bad / irresponsible financial decision making
* Punishes people who paid down loans early or worked during college
* Disproportionate benefit to those in more expensive schools
* Bernie's plan is regardless of income! (Lawyers benefit same as basket weavers?)

The list goes on. I can think of a lot "better" left-leaning things to spend $2.2tn on:
* Infrastructure
* Housing for homeless
* Healthcare for poor
* Some other national project... this plan makes the Green New Deal look like Einstein's work
* Literally just paying down debt

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Jun 24, 2019
Synergy_or_Syzygy:

* Punishes people who paid down loans early or worked during college

Exactly. I feel like it's a huge middle finger to those who actually had the initiative to work during school and to see those who took out loans carelessly getting bailed out. Really hope they don't take office.

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Jun 24, 2019

Incredibly stupid. If you were dumb enough to "fOLLoeeeW UR pAsSionZ" and load up on 100k in music school debt while others ate then that's on you.

Jun 24, 2019

This. I know a handful of people that went into law school, back to grad school after to get an Accounting degree just to get a job. Some doctors I know went through med school only to hate it, now have debt in the 300-400k+ (undergrad included).

No pain no game.

Jun 25, 2019

I know some people on the other end who went to ~3 years of college, never graduated. Now they have debt and no degree.

Jun 24, 2019

I chose to stay in state as well as many of my friends at my state school due to scholarships/cheap tuition. Student loan debt being cancelled would basically punish everyone like us. Also I can only see it leading to a higher enrollment in degrees that do not convert well to a FT job. (think history major at non-target)

Array

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Jun 25, 2019
quantgrunt:

I and many of my friends at my state school chose to stay in state due to scholarships/cheap tuition.

This.

Also, I think canceling debt fixes the cause and not the affect. What they should be promoting is, if you don't want to go into debt, go to community college for 2 years (credits are 1/10 the price), work while you're there, save up, then go to a state school for the last two years, and you can graduate with minimum debt.

Funniest
Jun 25, 2019

If people couldn't figure out on their own that $100k in debt for a bumfuckU gender studies degree was a bad investment, they are not getting my tax dollars.

Jun 25, 2019

Funny AND accurate. sb

Jun 28, 2019

Exactly.

Jun 25, 2019

Ah great! I was just wondering how I could repay my loans for my double bachelors from University of Phoenix and DeVry University. Thanks Bernie!

Jun 25, 2019

you always struck me as a Strayer guy...

Jun 25, 2019

Unfortunately Strayer did not offer my major of Submerged Bassinet Construction.

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Jun 25, 2019

Bad idea.

I think student loan debt is a problem, but that forgiving it is not the solution. Decreasing the cost of college naturally would be a healthier alternative. The government should be less involved.

Teaching high school kids about basic finance and showing them how lucrative some alternatives are compared to the college-path would go a long way. I remember we had an "advanced" English class my senior year (not even AP) and we were continuously told we were all "college bound" students. In reality, less than half should have actually attended college.

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Jun 25, 2019

Went to anon target for basically free, forgoing semi-target schools I got accepted into for the sake of family finances. Huge middle finger to people in that same situation across America.

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Jun 25, 2019

I just don't understand the Democrats. What kind of bullshit strategy is this? Alienating the Middle Class even more is NOT the answer. Go ahead and push this bullshit.

Agree with all of the above. Huge middle finger to those of us that paid off our loans and went in-state because we understand compounding interest...

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Jun 25, 2019

They want to win over the majority of the poor and push for anti-Trump campaign.

No pain no game.

Jun 25, 2019
trustmeimanengineer:

I just don't understand the Democrats. What kind of bullshit strategy is this? Alienating the Middle Class even more is NOT the answer. Go ahead and push this bullshit.

To be clear, I'm not in the "forgive all student debt" camp, but...do you not think the Middle Class has student loans? I would bet they have the majority of student loans...

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Jun 26, 2019

I didn't imply that they didn't.... I implied that a large portion of the middle class understands risk profiles and compounding interest... if there's a portion of society that understands university costs, it's the middle class.

I grew up in the lower-middle class, and my friends and I all chose the in-state option for the lower costs. Maybe it was a misnomer, but we all understood that starting salaries just don't support 100k+ in loans....

Jun 25, 2019

Since the Obama presidency, Dems have moved far left, and this trend accelerated with the Trump presidency. The Dems are now a socialist open-borders party that is obsessed with identity politics and wants reparations.

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Jun 25, 2019

The cost of higher education is a big problem but forgiving student loans is not the answer. My wife borrowed a lot of money to go to law school but we paid it back. Anyone who borrows money should assume that he or she will be required to repay the loan,

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Jun 26, 2019

IE: People should be accountable...

That's not what the Democrats preach.

Jun 25, 2019

I agree with OP. To me, it sort of feels like this would lead to the "lottery effect" where a lot of people who suddenly had no more student loans (more money to spend in their minds) but bad habits and poor financial literacy would just find other ways to get themselves into trouble.

In addition, wouldn't this just convince schools to keep tuition/school costs (the real problem) where they are if they will still get their money one way or another?

Jun 26, 2019

It would almost certainly increase the cost of school even further

Jun 26, 2019

Exactly. There's just too many variables that colleges put into their "costs" that would make total loan forgiveness impossible. There would (and will) never be an equitable way to fully forgive student loans.

Not saying it's the future or anything, but I listened to a Planet Money episode where students were applying for capital through a program at select schools, where they wouldn't have to pay back the money they received, but would rather have to pay a percentage of their earnings for the first ten (I think - could be wrong) years after college, sort of like an income-sharing agreement. There was a cap on how much they would have to give back in case they made it big and the percentage also discriminated based on major (Engineers would pay a lower percentage than English majors). Also, it didn't matter what job they took afterwards and essentially the clock for the payback period would pause if they wanted to take a gap year or anything.

Episode #903: A New Way to Pay For College

Jun 25, 2019

I'm fine with it but it needs to be coupled with actual action to reduce the cost of education otherwise we're just doing this every 10 years at which point, why bother at all?

Huge lol at the guy who thinks middle class America doesn't have student loan debt

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Jun 26, 2019

"You're a fucking moron" he says before he makes three separate completely incorrect statements.

Jun 25, 2019

Government has spent a lot more taxpayer dollars on a lot worse, so the idea doesn't offend me. A bailout for working professionals would be nice. Beats dumping a few more trillion into disastrous military adventures.

Jun 25, 2019

Decades of unimaginative thinking--responses of too hard--is what led to Bernie and Trump.

You can't just see a problem and something being broken but just step over it for too long. That's utterly insane.

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Jun 25, 2019

I actually think Robert Smith's recent gift to forgive all Morehouse's student debt for those graduating in 2019 is going to be a fascinating case study. Students a year before and after both did not get this and will this make more people continue to take debt and they'll just hope it magically goes away as well? Will there be some sort of stigma associated with the 2019 class since they are put on a much better footing than others (he essentially made them all "privileged")?

I think for the government to forgive all of the student debt would be ridiculous and just continue to inflate the education bubble - free money in general is always a bad idea.

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Jun 25, 2019

Terrible policy. Along with healthcare and housing, tuition has seen massive inflation adjusted cost increases due to government intervention and regulation. Get the government out of school loans, tax university endowments and place the burden on the universities, and allow people to discharge loans through a bankruptcy process.

Bernie's proposal is simply a punishment of those who did not attend college or responsibly paid off their loans. In turn, it also favors the wealthy universities, crushing small local colleges in the process. Schools will only be incentivized to further raise tuition.

Jun 25, 2019

Listening to him/his supporters speak is almost cute...some people get angry, but it's become such a spectacle to me that I appreciate the comedic value

Jun 26, 2019

I don't see how this generates them any new votes. The stereotypical millennial whining about student loan debt was already voting Dem.

Plus, the college population as a whole could be considered "privileged" already as I imagine their parents incomes would be above the average American. So it seems like this is a more regressive policy and inconsistent with other parts of Dem platform - now they're just offering handouts for votes.

Jun 26, 2019

Only in favor if we also cancel our debt to China.

Array

Jun 26, 2019

Its a fucking dumb and unpractical idea. Fucking Bernie and Ihlan Omar need to wake the fuck up too. Their plan is not creative at all and makes no sense. "Oh we'll raise the money by taxing wall street" yeah said you and like everyone else since '08. I'm surprised Omar can even draw breath between her anti-Israel rhetoric, let alone formulate an idea (if you can even call this an idea). Warren needs to ditch this plan if she is serious about running for president. I don't think Bernie qualifies as serious, so he can just do whatever he wants, idgaf.

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Jun 26, 2019

Didn't Omar marry her brother?

Array

Jun 26, 2019

I heard about that and wouldn't be surprised. She is lowkey one of the worst people and is not intellectually capable of being in office. Her and Donald are much more similar than she would ever care to think.

Jun 26, 2019

Would it be so bad if we ended all tax deductions and exemptions? Lower capital gains and lower marginal rates on a progressive basis.

Jun 26, 2019

Or get rid of taxes all together because its objectively theft?

Jun 26, 2019
Skyywalker:

Or get rid of taxes all together because its objectively theft?

It's literally not theft.

Jun 26, 2019

It's a great idea. An entire system that scams students by feeding them ideology, shielding them from life hardship, thus making them essentially underqualified and psychologically fragile will be preserved by holding the collective responsible, aka socialization of losses, instead of the academia itself, the main culprit, and those who were dumb enough to get scammed.

Personal responsibility is essentially abolished in favour of a fairer system where if you fail at something, you'll get someone to blame and someone that pays for you. It's certainly never your fault. The future looks bright.

Happy Chinese century btw.

Jun 26, 2019
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