Democrats purposing 2k per person every month.Suspending Mortgage/credit card etc payments

[2stainz]

What a dumb ass come back in that tweet. Curing cancer after many have died doesn't negatively affect anyone. It doesn't leave anyone feeling bitter and it doesn't punish responsibility.

Take two people graduating with the same amount of debt. Person A forgoes buying a big house, new car, take vacations, etc... in order to pay off their student loan early and end up paying less overall. Person B pays as little as possible on their loan, spends their money on a luxury car, goes on trips frequently, and keeps a fukk off money stash. The day Person A pays off their loan Person B has their loan forgiven. Person B is now in a much better situation than person A even though they were not as fiscally responsible.

Person A takes out the equity in their home at a very low rate to pay for their kids college and Person B just tells their kids to max out loans. Person B has their kids loans forgiven while Person A is stuck with the debt.

By doing a blanket forgiveness without any sort of consideration for other people you leave a lot of folks not only bitter but actually in a worse situation than the people who just let the loans sit there. I personally know a woman who has an ass load of loans but is on a very low payment plan because she don't even try to pay it off. If her shyt gets forgiven that's a slap in the face to everyone who actually paid.

If they gonna do forgiveness they need a tax credit for other folks who paid their off or have paid for years.

You see how hard of a time they having now when all they need to do is cut a check to everyone. There is no way they would work through everything involved in forgiving loans without pissing off a sizable portion of the population. Not only couldn't they do it but they wouldn't because the people most for it are the group of people least likely to vote.

What about in any forgiveness scheme.. only the principle should be forgiven (along with your tax credit idea)?

That way the accrued interest for the careless borrow will still be there after the forgiveness. Meanwhile the responsible borrower will get the tax credit incentive and the careless borrow will have the disincentive of always owing the interest, no matter what, if the loan is not payed off early

 

[HabitualChiller]

Partial forgiveness of a loan has ZERO impact on someone's disposable income. It wouldn't help anyone in the current economic climate. Let me tell you why.

OK you have a loan for $25k with a monthly payment of $500. The government comes in and says hey we will partially forgive your loan with $15k as part of a stimulus package. But guess what, even though now you only have $10k in loans, next month you still owe $500. You don't have any additional disposable income. The government either has to forgive 100% of your loan or give you a partial forgiveness with an immediate refinance and drop in payment for you to have additional money to spend. They don't have the manpower to handle refinancing all those loans in an emergency situation.

Oooooh. So the government would be best served to just freeze the payment requirement only.

Could they also send out some type of requirement to each applicable person's lender to re-finance a loan if they went the partial forgiveness route?

Actually, there's 44.7 million people with student loan debt, so idk if that would even be possible to accomplish in a timely manner.

 

[Brolic]

Partial forgiveness of a loan has ZERO impact on someone's disposable income. It wouldn't help anyone in the current economic climate. Let me tell you why.

OK you have a loan for $25k with a monthly payment of $500. The government comes in and says hey we will partially forgive your loan with $15k as part of a stimulus package. But guess what, even though now you only have $10k in loans, next month you still owe $500. You don't have any additional disposable income. The government either has to forgive 100% of your loan or give you a partial forgiveness with an immediate refinance and drop in payment for you to have additional money to spend. They don't have the manpower to handle refinancing all those loans in an emergency situation.

They're already suspending loan payments for 2 months. I don't think you understand student loans.
If you had 15k out of 25k forgiven, you could change your payment plan or refinance your loan to lower your monthly payment. So instead of paying $500 month, you might only pay $250. That's an extra $250 in your pocket. It definitely would help short term and long term.

 

[Isaiah Bradley]

somebody lying about who offering what/when...