As Biden administration leans toward $10,000 in student loan forgiveness, advocates push back

[madville]

This discussion thread was locked as off-topic by Omaha Steve (a host of the Latest Breaking News forum).

Source: CNBC

Advocates expressed anger and disappointment on Friday in response to news that the Biden administration is leaning toward forgiving $10,000 in student loans per borrower.

Some Democrats and activists have insisted that President Joe Biden needs to cancel at least $50,000 per borrower to make a meaningful impact on the country’s $1.7 trillion outstanding student loan balance. More than 40 million Americans are in debt for their education, and about 25% of those borrowers are in delinquency or default.

“It’s an absolute insult,” said Thomas Gokey, co-founder of the Debt Collective, a national union of debtors. “This is less than what he promised on the campaign.” NAACP President Derrick Johnson said $10,000 “won’t do anything” for the Black community.

“The average Black borrower has $53,000 in student loan debt four years after graduation, nearly twice the amount as their white counterparts,” Johnson said, in a statement. “Ten thousand dollars in cancellation would be a slap in the face,” he said. “President Biden, it’s not about whether you can do it; it’s about whether or not you have the will to do it.”



Read more: https://www.cnbc.com/2022/05/27/advocates-slam-reported-biden-plan-to-cancel-10000-in-student-debt.html

[questionseverything]

1. He needs to cancel $10,000. With the understanding his administration will continue

To address the problem

[The Mouth]

31. A reasonable amount would be the cost of the nearest state university

I don't mind paying for someone to go to the nearest public 4 year institution; but damned if I want to pay for someone going to a ivy or Stanford. I was able to go to a State College, and it was cheap; I couldn't afford to go to a UC, so I didn't.

[questionseverything]

34. Negotiating that would be a next step in addressing the problem

Forgiving ten grand would keep a campaign promise and be a start

[FBaggins]

2. Perhaps Gokey should get $0

Wouldn't want to insult.

[Yo_Mama_Been_Loggin]

3. K&R

[BeyondGeography]

4. For the record, $10K is nothing to sniff at

Canceling $10,000 would eliminate the student debt for about a third of all borrowers, according to data from the College Board. Another one-fifth would stand to have their student debt balance cut by at least half.

https://www.latimes.com/politics/story/2022-05-24/will-student-loan-forgiveness-boost-the-econo

[NullTuples]

13. True but even in-state California State U is $20k/year living w/parents (ie zero for rent & food)

That's tuition, fees, books, supplies, etc..

[onecaliberal]

15. My kid is at state u, living with me. It's not 20,000 but it is a lot.

[Fiendish Thingy]

21. That must be for UC (like Berkeley, UCLA) not Cal State. Nt

[elleng]

5. Some Democrats and activists should get a grip, please.

[oldsoftie]

24. Not gonna happen. Its the "shoot yourself in the foot" crowd.

If a good portion of people HERE think 50k isn't right, most people probably agree

[elleng]

28. Amazing, imo.

$10k sounds good to me.

[LenaBaby61]

35. THIS 👆🏻👆🏻👆🏻

[msongs]

6. oh no the 10K would undercut the egos of these protestors while helping thousands nt

[WhiskeyGrinder]

7. A means-tested $10K is pathetic. For many people, it would be erased within months as the

interest keeps accumulating. It's frustrating to see someone lay down a bunt when a nice softball is hanging over the plate.

[DetroitLegalBeagle]

8. Perfection should not be the enemy to progress

Take the 10K and continue to push for more. Or stick with the everything or nothing approach and don't be shocked when you wind up with nothing.

[LenaBaby61]

36. It's like these protesters think that they'd get a better deal or ANY deal from the GQP?

Why Republicans keep rolling out bills to stop Biden from canceling student debt.

https://www.businessinsider.com/republican-bills-stop-biden-cancelling-student-debt-2022-5


SOME of these people don't seem to understand how politics works. Biden can't do much of anything with manchin and sinema NOR with the GQP US Taliban party in there stopping him. He needs a super majority to get anything done, and he's not close to having 67 senators helping him.

[Evolve Dammit]

9. The raping of America. All costs are soaring. Colleges are off the charts. Has shifted dramatically.

[crimycarny]

10. How a choice between about $10000 or zero interest?

As a first step? For some 0% interest will save thousands more than $10000. For others $10000 might wipe out all or most of their debt. Of course $10000 forgiveness AND 0% interest would be even better.

I know it’s not perfect but if Dems hold out for $50000 they’ll get nothing.

[LT Barclay]

12. Considering I'm carrying a fairly big debt, I believe this is a very fair option, but should be

retroactive to the start of the loan. My loan is at about 7% interest, which is obscene considering the government basically gives loans to big corporations.
I also think that framing things this way gets past the "something for nothing" objection.

[crimycarny]

23. 7%!!!??

That’s insane! Yes, and make it retroactive. Oh my god...I can’t believe 7%. How does anyone ever pay that off. Predatory.

[yourmovemonkey]

32. 8.25% over here

It's brutal

[FBaggins]

37. Then you may be in for some bad news

IF the president has the authority to forgive student debt... he certainly can only do so for loans that the government holds.

If you're paying 8.25%... then it's a private student loan, isn't it?

[crimycarny]

38. Holy Cr*p

I had no idea the interest rates were this high. That is absolutely insane and absolutely predatory. If nothing else the interest rates need to go to zero. Those ridiculous interest rates are unconscionable.

[oldsoftie]

27. I would support zero or near zero interest.

And what you suggest is how you get things done. I would bet that even some republicans would go along with it.

[SmittyWerben]

11. This is very nice.

But I would really like to see the interest rate drop to zero. Apply the $528 payment I make right now (just to keep my loan at 98K) to the principle each month and that would get it paid off before I die. I borrowed less than I owe right now, and I have paid more than I borrowed originally. Kill the interest and let me pay this down.

[LT Barclay]

14. Agreed.

Current interest rates on student loans are approaching loan shark levels when you consider the principal involved.
I always compare interest rates to what was written in the Washington Irving story "The Devil and Tom Walker", the guy sells his soul for gold and the devil says you can't just let it sit there, and Tom tells him of course not, I'm going to use evil to do evil and instead of charging people the normal "usurious" rate of 2%, I'm going to charge them 4% interest.
I'll admit I had to look up usurious, but in the 1700's 2% was considered "sinful"!

[MichMan]

17. The Federal government is responsible for setting the interest rates

It was included as part of the ACA in 2010 when the government took over the student loan program as the direct lenders.

[LT Barclay]

18. That's one of the reasons it is infuriating. They shouldn't be charging students that much.

[Auggie]

20. Agree. Kill the interest.

[brooklynite]

16. Yes! Let's demand ideological purity and lose!

We may not be able to help people, but they'll we know that we stood on absolute principles. That'll make 'em feel better.

[Fiendish Thingy]

25. One person's ideological purity is another's solidarity with Democratic Party values.

The Democratic Party still has consistent, non-negotiable values, right?

They haven’t all been sacrificed at the altar of pragmatism, have they?

[brooklynite]

30. The Democratic Party has non-negotiable values on student loans?

Can you point to cancelling student loans in any of the previous Party Platforms?

[BaronChocula]

19. Going after Biden for making inroads on this reminds me of

Trump attacking NATO allies or Bush attacking Iraq for 9/11

[Fiendish Thingy]

22. Just do it, Joe- $50k forgiveness NOW

Worst that could happen, Dems lose the midterms

Best that could happen, Dems win the midterms due to massive young voter turnout.

Either way, millions of people are helped, and no one is hurt (unless you count the hurt fee fees of the centrists).

The reaction of economically anxious white swing voters should not be part of the decision making process; the impact on the lives of young voters should be a part of the decision making process.

[Demsrule86]

26. This will destroy future student loans. I would rather see interest reduced or eliminated.

And I doubt the courts will permit it. Also, what is the polling on this? I would bet that some will be very unhappy about this and it could affect the midterm. Also, Biden said $10,000 all along and I expect with right wing courts we won't even get that.

[oldsoftie]

29. Nobody thinks about the big picture apparently.

[JCMach1]

33. 10K is just going to piss people on both sides off lose/lose

[Omaha Steve]

39. After a review by forum hosts....LOCKING

Opinions about an action that has not been finalized are not LBN.

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