17 state attorneys general call for canceling $50K in student loan debt

[DonViejo]

Source: The Hill

BY JORDAN WILLIAMS - 02/19/21 11:20 AM EST

A coalition of 17 state attorneys general is calling for the cancellation of up to $50,000 in federal student loan debt for all borrowers.

The Democratic attorneys general, led by New York Attorney General Letitia James and Massachusetts Attorney General Maura Healey, sent a letter to congressional leaders on Friday supporting resolutions that call on President Biden to use executive action to forgive outstanding student loans.

“The existing repayment system for Federal student loans provides insufficient opportunity for struggling borrowers to manage their debts or recover from the current economic crisis,” the attorneys general wrote. “Broad cancellation of Federal student loan debt will provide immediate relief to millions who are struggling during this pandemic and recession, and give a much-needed boost to families and our economy.”

The letter noted that borrowers were struggling with student debt long before the coronavirus pandemic, and that people of color have been disproportionately affected.


Read more: https://thehill.com/policy/finance/539569-17-state-attorneys-general-call-for-canceling-50k-in-student-loan-debt

[Laelth]

1. Good. k&r for visibility. n/t

-Laelth

[Budi]

2. The entire Student Loan Program has to be simplified & reworked.

Without that massive rework, this move is a bandaid.

Pull it apart, simplify, & make it feasable policy for the future borrowers who will also find themselves with no way out but to beg for loan forgiveness.

The Student Loan Program, as it stands today has become a behemoth of years of bogged down policy that can only be changed, improved & re-written thru Legislation.

Get on that! How many years have those advocating for the $50g had to approach the simplifying of this massive tangled program ?

[MichMan]

15. It was revamped as recent as 2010 as part of the ACA

Federal government took on direct lending in 2010 as part of the ACA. The income from interest rates were established to offset some of the costs of health care subsidies

[Budi]

17. Needs a deep dive again

[oldsoftie]

3. Guess I'll go out & borrow MY 50k.

[MichMan]

4. Good, they could start by making all state colleges in their state tuition free

[Mosby]

6. The young people this helps have the lowest voting rates of any demo

Its just stupid at so many levels.

[NurseJackie]

8. This.

Thank you.

[Budi]

18. Thank you.

It is a damned insult.

[LanternWaste]

20. No one has argued it's forced... so your point is at best, merely irrelevant.

All else you scribed with such insight is simply editorial unsupported by evidence.

Hope there's not another series of consistent "this message was self-deleted by its author."

[bucolic_frolic]

7. College costs are the root of the problem

and the way colleges know that costs don't matter when federal money is almost infinitely available. Reward this with federal largess and they'll go out and do it again, forever.

Partial relief and deferral, into the higher earning years for those encumbered, make more sense to me.

[olddad65]

12. Is that the root of the problem or is the high interest rates the root of the problem

How about student loan rates tied to grades. With zero of A average. Or loans forgiven or the rate reduced upon graduation.

[MichMan]

16. Ask those in Congress why they included student loan interest in 2010 as part of the ACA ?

[Politicub]

9. I think the amount of debt forgiveness should be pegged to the median tuition

of attending a public college in-state for four years (that doesn't include housing).

I understand what Biden is saying about subsidizing people who decided to go to elite private colleges.

I agree with his position. People ought to have the freedom to go to school where they want, public or private. But there should be some kind of metric by which to calculate a fair forgiveness amount. It would make it easier to sell the program to the public, too.

I grew up poor and I didn't even think of private colleges as an option. I had a great experience at a state liberal arts university, and it led to a great career. I feel so fortunate that I had the opportunity.

[GentleAlien]

10. Very much an existential threat..

- Before Covid hit:
1. the Government wasn't covering for people's funeral expenses (upto $2k)
2. the Government wasn't footing the bill of some of their medical expenses (for majority not enrolled in Medicare/Medicaid)
3. the Government wasn't pouring in trillions of dollars to bail out businesses that would surely fail without that help

...So, the question is Why not forgive government debts in these dire times, something you won't comptemplate in 'normal' times? The current situation is akin to US getting attacked and losing half a million lives and trillions to war. Shouldn't we just pretend that it's business as usual??

[Mr.Bill]

11. I didn't go to college and didn't take out any loans.

I'll take my 50K in cash.

[olddad65]

13. I saved and saved so my son wouldn't be saddled with a huge debt.

Where is my 50k

[left-of-center2012]

14. What do State attorneys general have to do with student loans?

[brooklynite]

19. Not clear what an AG's opinion has to do with this...

[ck4829]

21. K&R

[FBaggins]

22. But do 17 left-handed minor-league relief pitchers agree?

Their opinion would only be slightly less relevant.