(02-06-2021, 07:30 PM)jagibelieve Wrote:

(02-06-2021, 07:13 PM)EricC85 Wrote: Well I’m certainly not a Biden supporter and on the surface I’m with you 100% student debt needs to be paid by those that took out the debt.

That said I’m just reading the tea leaves and see it almost inevitable they’re going to “write off” a portion if not all student debt for a large portion of the population holding that debt. 

I guess I’m just throwing out there the idea of give and take, IF we’re going to go down that road let’s tie it to something else reduce their social security payouts and we can make some of that money back over a long period of time. 

For example sally has 90k in student loans and is going to be receiving a 50k forgiveness from the current administration. Why not make the automatic social security withdrawals continue but then when salt retires she either gets a 50k deduction in benefits or doesn’t collect until the 50k is paid back from her social security allotments. 

This way we continue to some what fun social security for current generations and ease the payments for future generations as the system is becoming more and more insolvent. 

To me the alternative is we let nature takes its course the bubble pops and everyone is hurt by the stock market drop and or recession similar to the housing bubble, it would wreck the returns on older generations trying to retire now as well. Or we write it off and the rest of us take it on the chin and pay it off in taxes no one wins here. Or hope a generation that is way over spent and under employed is going to some how payback this money not very likely. 

It’s a bad situation with no perfect solution. 

Long term there has to be something done to control cost, if education is going to be publicly funded (which it is indirectly now) the free market supply and demand doesn’t work there has to be price controls. 

Like insurance and any other sector once you eliminate the two party supply and demand and introduce third party subsidies the rules of free market go out the window.

So can we "write off" $50k of debt on my property and let me "pay it back" by reducing my SS payments?

What exactly is the difference between a student loan, mortgage, car loan, etc.?

Well the reality is there is no difference in the loan only the circumstances. These student loans are federally guaranteed (something we need to reevaluate but that’s another topic) which means if the loans are defaulted the tax payer is still paying the Bill. Sure refunds and wage garnishment might recoup some of that money but probably not nearly enough to offset a massive default bubble. 

My point is trying to avoid another bubble bursting and wrecking havoc on the economy as a whole. At the same time addressing another reality that social security even under the best circumstances will be insolvent in 40 years if not sooner. Doesn’t change the reality these workers are still going to have to fund it but they likely won’t see much of a return so let’s trade. One generation funds retirement the other funds college. It’s just an idea

---

(02-06-2021, 09:12 PM)StroudCrowd1 Wrote:

(02-06-2021, 09:00 PM)mikesez Wrote: I don't think any of them should be forgiven, not completely.  Everyone should pay what they can for at least 7 and preferably 10 years.  Maybe forgive after that.

The other problem is no one is talking about what this might do to tuition prices going forward.

So what is the biggest problem? Is it the loan itself or the payment amount? Why not discuss refinancing at a longer term with VERY low interest rates? Anyone can afford a couple hundred dollars a month.

They already have income driven repayment plans it’s not the payments it’s the amount of these loans. It’s not uncommon for them to be near six figures so now you have a generation with a mortgage payment but no house that’s bad economically speaking. We either have to stop federally funding these loans (my preference) or Establish strict price controls (more likely option given society’s preference to centralize everything). 

Doesn’t change the default bubble coming either way but let’s at least stop the bleeding at some point right?

---