Official Student Debt Cancellation Watch Thread

[alybaba]

Don’t have any student loan debt, have a 100k each in 529s for my 3 year olds and I’m happy Biden finally did this - this money goes straight back into the economy and has a multiplier effect, more than tax cuts for corporates and high earners

 

[dtownreppin214]

Sirota on board?

 

[Leavingtheecstasy]

Don’t have any student loan debt, have a 100k each in 529s for my 3 year olds and I’m happy Biden finally did this - this money goes straight back into the economy and has a multiplier effect, more than tax cuts for corporates and high earners

Aight put me on

 

[88m3]

I saw Elizabeth on CNN earlier giving her praises as well. This is a win for everyone.

I think highly of Elizabeth Warren

 

[Serious]

r/Conservative is trying their hardest to pretend like they’re not ecstatic right now and it has me dying Usually, it’s the twilight zone over there, with constant dog whistles and edgelord rants about society. The energy a bit different today Republicans would never and they gotta know it deep down.

elaborate

 

[gangreen]

Joey B keeping his campaign promise

 

[CrimsonTider]

Don’t have any student loan debt, have a 100k each in 529s for my 3 year olds and I’m happy Biden finally did this - this money goes straight back into the economy and has a multiplier effect, more than tax cuts for corporates and high earners

You have saved 200k in 3 years?

The average 529 balance at 18 is like 27k and it can only be spent on education

 

[FAH1223]

You have saved 200k in 3 years?

The average 529 balance at 18 is like 27k and it can only be spent on education

@alybaba is a high earner

 

[10:31]

Anyone have a clear breakdown on next steps does the change take effect automatically or does it need to be requested by the borrower?

 

[CrimsonTider]

@alybaba is a high earner

High earner and saving 200k in 3 years is something else

 

[☑︎#VoteDemocrat]

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US student debt relief is an economic nothingburger​

Goldman Sachs doubts the impact on growth and inflation will be noticeable​

8 hours ago

© AFP via Getty Images
The Biden administration’s decision to cancel billions of dollars worth of student debt has caused a bit of an internet tantrum lately. But does it matter economically as much as some people claim?

Not really, according to Joseph Briggs and Alec Phillips of Goldman Sachs. Here are the key points they made in a report on the subject overnight.

The Biden Administration has announced three student loan policy changes: (1) federal student debt forgiveness up to $10k per borrower—and up to $20k per borrower in many cases—among households with income up to $250k; (2) a continuation of the pause on current student loan payments through year-end, after which payments will resume; and (3) an income-driven repayment plan that would cap monthly payments to 5% of a borrower’s discretionary income (from 10% under an existing program).
The program looks likely to discharge around $400bn (1.6% of GDP) in student loan balances. We estimate that the debt forgiveness program would reduce student debt payments from roughly 0.4% to 0.3% of personal income, with middle-income households disproportionately benefiting from the reduction in debt payments.
The aggregate effects from such an income boost would be small, however, with the level of GDP increasing by about 0.1% in 2023 with smaller effects in subsequent years. We would expect the effects on inflation to be similarly small.
However, the end of the payment pause and the resumption of monthly payments looks likely to more than fully offset the small boost to consumption from the debt relief program. It is unclear how many borrowers will take up the new income-driven repayment option or when it will become available, but lower monthly payments under that program could further reduce monthly payments next year.
While the program will ultimately increase the level of federal debt by roughly the amount it reduces student loan balances, the only near-term impact on Treasury cash flows will be a roughly $35bn annualized increase in student loan payments next year as payments resume, but at a level somewhat lower than the pre-pandemic trend due to debt relief.

Still, we doubt that this is going to alter the Discourse.

 

[Pressure]

I guess that’s the new talking point

 

[Saysumthinfunnymike]

I missed a ton of pages. Who is throwing cold water on this?

 

[Originalman]

@alybaba is a high earner

Great post and this was something I was thinking about earlier. Cause its going to be a mess come January 1st 2023.

 

[Insensitive]

High earner and saving 200k in 3 years is something else

Depends on what they're earning though.
Someone who's a physician, middle management at a large corporation, high level IC at a large corporation, SWE in Tech etc.
200k is definitely possible in 3 years but that is depending on the job title and obviously living expenses.

Example:

180K Compensation, Middle Management at a large corp. , living expenses for the total year being $30K, $30k to retirement accounts, $70K towards future
kids education ($35k per 529) in 3 years is very doable, especially when the accounts have no contribution limits.

We have some physicians, high level managers and SWE's on here I think, so there are most likely some brehs at the $150k a year mark or well past that.