Official Student Debt Cancellation Watch Thread

[King Kreole]

@CrimsonTider is not wrong that forgiving the student loans would blow up the decifit in 2022 and would also increase the debt long term due to lost revenue.

Oh shoot, just when we were close to solving the deficit and debt issue

that horse has bolted the barn, help the damn people

 

[Pressure]

Oh shoot, just when we were close to solving the deficit and debt issue

that horse has bolted the barn, help the damn people

It's okay to say you didn't know it would affect the debt and deficit and that you don't care.

But it matters because there is a large contingent of voters many of whom won't benefit from this that do have concerns over the debt and deficit.

And for that reason if debt forgiveness happens, either legislatively or executively it won't be blanket debt relief and will probably be a number where you get the most value without the biggest deficit hit.

Especially when you're pushing for other deficit increasing social programs.

"The Dems are blowing up the deficit to Pay of the debts of irresponsible ivy leaguers is going to be a popular talking point ."

 

[King Kreole]

It's okay to say you didn't know it would affect the debt and deficit and that you don't care.

But it matters because there is a large contingent of voters many of whom won't benefit from this that do have concerns over the debt and deficit.

And for that reason if debt forgiveness happens, either legislatively or executively it won't be blanket debt relief and will probably be a number where you get the most value without the biggest deficit hit.

Especially when you're pushing for other deficit increasing social programs.

"The Dems are blowing up the deficit to Pay of the debts of irresponsible ivy leaguers is going to be a popular talking point ."

1. The argument wasn't over whether this would have an impact on the debt/deficit, it was whether debt forgiveness would necessitate new spending and therefore require congressional authorization. @CrimsonTider wasn't making a point about the popularity/political wisdom of varying levels of debt forgiveness, like you're now making, he was questioning the possibility/legitimacy of even doing it in the first place.

2. Every Fiscal policy has an impact on the deficit/debt, everyone understands that, but playing budget hawk to pooh-pooh immensely helpful social policies is Manchin/Republican shyt. Preemptively negotiating yourself out of doing helpful shyt because of hypothetical negative backlash is peak Democrat brain.

 

[CrimsonTider]

1. The argument wasn't over whether this would have an impact on the debt/deficit, it was whether debt forgiveness would necessitate new spending and therefore require congressional authorization. @CrimsonTider wasn't making a point about the popularity/political wisdom of varying levels of debt forgiveness, like you're now making, he was questioning the possibility/legitimacy of even doing it in the first place.

2. Every Fiscal policy has an impact on the deficit/debt, everyone understands that, but playing budget hawk to pooh-pooh immensely helpful social policies is Manchin/Republican shyt. Preemptively negotiating yourself out of doing helpful shyt because of hypothetical negative backlash is peak Democrat brain.

I’m not playing budget hawk im just explaining the transaction. This is way too technical but fukk it

currently the DOE has 1.8 trillion dollar asset on its books.

Biden has forgiven 11 billion in student loan debt so far

This means the 11 billion of the 1.8 trillion owed from the public was reclassed and now it’s owed from the president

now DOE had 1.7 trillion due from the public and 11 billion due from the president

on the other sides, now Biden has 11 billion liability due to the DOE.

Biden is going to settle this debt by re appropriating un used funds that he controls( this is the same exact thing Trump did to get funds for the wall)

‘Now anyone thinking Biden can find 1.8 trillion is tripping but what he can do is get the DOE stop trying to collect( the same thing he’s doing with the pause)

‘This is why we need reform

 

[mastermind]

Now anyone thinking Biden can find 1.8 trillion is tripping but what he can do is get the DOE stop trying to collect( the same thing he’s doing with the pause)

This is why I said you two shouldn’t waste your time since he won’t read your post/doesn’t care. @FAH1223 @King Kreole

 

[King Kreole]

I’m not playing budget hawk im just explaining the transaction. This is way too technical but fukk it

currently the DOE has 1.8 trillion dollar asset on its books.

Biden has forgiven 11 billion in student loan debt so far

This means the 11 billion of the 1.8 trillion owed from the public was reclassed and now it’s owed from the president

now DOE had 1.7 trillion due from the public and 11 billion due from the president

on the other sides, now Biden has 11 billion liability due to the DOE.

Biden is going to settle this debt by re appropriating un used funds that he controls( this is the same exact thing Trump did to get funds for the wall)

‘Now anyone thinking Biden can find 1.8 trillion is tripping but what he can do is get the DOE stop trying to collect( the same thing he’s doing with the pause)

‘This is why we need reform

Do you have any references or sources for your claims of the Executive Office having to writing a check out of the EOP budget to the DoE for the amount they will forgive or having to find the money "in the couch cushions" of the EOP to pay back the DOE for the billions that have already been forgiven? Because the annual EOP budget is only around $700M, so what you're telling us is that Biden has already zeroed out the entirety of the Executive budget for the next 15 years and sent it to the DoE.

This is the most explicit resource I've found detailing the actual financial mechanics of student debt forgiveness and it's assigning the write-off to the federal deficit, not the Executive office.

What Would Forgiving Student Debt Mean for the Federal Budget?

What happens if the government cancels the debts?
Cancelling student debts will immediately increase the federal deficit; how much depends on the value of the forgiven loans.

Suppose the government made a $100 student loan in January and estimated it would bring in a net surplus of $3 over its life. If nothing had changed since January, cancelling that debt would increase the deficit by $103. The government would lose the $100 face value of the loan plus the $3 surplus it expected. (There may also be an effect on tax revenues. That depends on whether the government treats loan forgiveness as taxable income.)

Many things have changed this year, however. The ongoing economic crisis increases the potential for defaults or loan forgiveness through existing income-based repayment programs—both of which lower the value of existing student loans. Plummeting interest rates, on the other hand, have increased the value of existing loans because their interest rates are fixed, and the interest rates at which the government borrows are not. The current value of the $100 loan might be more or less than $103, depending on how the government weighs those changes. Whatever it is, that new value would be recorded as the deficit increase from loan forgiveness.

Cancelling student debt has no immediate impact on the national debt. The money that funded the loans is already out the door. But the debt will eventually be higher because the debts don’t get paid back. That increase shows up over time when expected future loan payments do not get made.

 

[King Kreole]

This is why I said you two shouldn’t waste your time since he won’t read your post/doesn’t care. @FAH1223 @King Kreole

I can't help myself

 

[CrimsonTider]

This is why I said you two shouldn’t waste your time since he won’t read your post/doesn’t care. @FAH1223 @King Kreole

didnt you post something blaming Biden that student debt can’t be charged off through bankruptcy

There’s nothing here I’ve said that goes against that @FAH1223

I’m pointing out that the cancel student loan debt argument is headed towards delusional levels

Do you have any references or sources for your claims of the Executive Office having to writing a check out of the EOP budget to the DoE for the amount they will forgive or having to find the money "in the couch cushions" of the EOP to pay back the DOE for the billions that have already been forgiven? Because the annual EOP budget is only around $700M, so what you're telling us is that Biden has already zeroed out the entirety of the Executive budget for the next 15 years and sent it to the DoE.

This is the most explicit resource I've found detailing the actual financial mechanics of student debt forgiveness and it's assigning the write-off to the federal deficit, not the Executive office.

What Would Forgiving Student Debt Mean for the Federal Budget?

assigning it to the federal deficit is spending money. Biden can’t do this, only Congress can

It’s not just the executive office. Biden is authorized to spend appropriate funds from various departments of the federal government.

This is ow government finance works. I’m not googling a source. Does this seem like something made up?

What I don’t get is how come AOC, Pelosi or Warren have not drafted a framework for student loan reform that provides relief to current borrowers and is fair to future ones. That is paid for through taxing something or cutting something?

they’re just yelling cancel the debt because it’s popular and energizes the base but they know it’s not realistic and that’s not real work being done by them

 

[FAH1223]

didnt you post something blaming Biden that student debt can’t be charged off through bankruptcy

There’s nothing here I’ve said that goes against that @FAH1223

I’m pointing out that the cancel student loan debt argument is headed towards delusional levels
assigning it to the federal deficit is spending money. Biden can’t do this, only Congress can

It’s not just the executive office. Biden is authorized to spend appropriate funds from various departments of the federal government.

This is ow government finance works. I’m not googling a source. Does this seem like something made up?

What I don’t get is how come AOC, Pelosi or Warren have not drafted a framework for student loan reform that provides relief to current borrowers and is fair to future ones. That is paid for through taxing something or cutting something?

they’re just yelling cancel the debt because it’s popular and energizes the base but they know it’s not realistic and that’s not real work being done by them

The money has already been appropriated and spent though. The Federal Claims Collection Act of 1966 is what forgiveness advocates and lawmakers are pointing to to say that forgiving the loans or not collecting the debt is not spending new money.

From the link I posted earlier: “Under the Federal Family Education Loan Program (FFELP), Congress authorized the Department of Education to guarantee (and pay a portion of interest on) loans issued to students in eligible institutions as defined by the program. See generally 20 U.S.C. § 1071(a)(1); HEA, Title IV, Part B. Congress authorized appropriations for “such sums as may be necessary” under the program, which “shall remain available until expended,” 20 U.S.C. § 1071(b).”

 

[King Kreole]

assigning it to the federal deficit is spending money. Biden can’t do this, only Congress can

Incorrect.

I’m not googling a source. Does this seem like something made up?

Yes.

What I don’t get is how come AOC, Pelosi or Warren have not drafted a framework for student loan reform that provides relief to current borrowers and is fair to future ones.

Student loan debt forgiveness is just one leg of the holistic post-secondary education reform being pushed by progressives, the other major leg being universal tuition-free public college. Biden himself has guaranteed tuition free community college.

Student loan debt forgiveness is the lower hand fruit w/r/t executive action, so it makes sense to prioritize that, but there are arguments that Biden can also do the latter via executive order as well.

Biden Can Give Us Free College Without Congress. But Will He?

they’re just yelling cancel the debt because it’s popular and energizes the base but they know it’s not realistic and that’s not real work being done by them

Disagree.

 

[mastermind]

didnt you post something blaming Biden that student debt can’t be charged off through bankruptcy

He supported the bill that made it hard to claim bankruptcy through student loans. Iirc, you agreed with Biden.

There’s nothing here I’ve said that goes against that @FAH1223

I’m pointing out that the cancel student loan debt argument is headed towards delusional levels

When you talk about cutting a check, you are actually not referring to what they said. You pulling that @the cac mamba bad faith playbook.

 

[CrimsonTider]

He supported the bill that made it hard to claim bankruptcy through student loans. Iirc, you agreed with Biden.

When you talk about cutting a check, you are actually not referring to what they said. You pulling that @the cac mamba bad faith playbook.

Any one that thinks student loans should be able to be charged off through bankruptcy, is not to be taken seriously.

He supported the bill that made it hard to claim bankruptcy through student loans. Iirc, you agreed with Biden.

When you talk about cutting a check, you are actually not referring to what they said. You pulling that @the cac mamba bad faith playbook.

it’s not bad faith at all. I’m pointing out that Congress would have to authorize Biden the money to cancel the debt. Biden absolutely can tell the DOE to stop making payments

But none of that is reform and using economic reasons to cancel the debt is silly When people with degrees are better off than those without one

 

[No1]

Any one that thinks student loans should be able to be charged off through bankruptcy, is not to be taken seriously.



it’s not bad faith at all. I’m pointing out that Congress would have to authorize Biden the money to cancel the debt. Biden absolutely can tell the DOE to stop making payments

But none of that is reform and using economic reasons to cancel the debt is silly When people with degrees are better off than those without one

Fam, just say that you don’t agree with the idea of tuition-free college or forgiving current debt and move on. You are a conservative. Stop arguing with people who don’t share your politics. It’s become pedantic.

 

[CrimsonTider]

Fam, just say that you don’t agree with the idea of tuition-free college or forgiving current debt and move on. You are a conservative. Stop arguing with people who don’t share your politics. It’s become pedantic.

Y’all are insane. I’m the only one in this Thread talking about reform(see the quote below)

what’s more conservative than saying “fukk everyone else situation, do what benefits me”

And that’s exactly what the “cancel my student” fukk future borrowers sentiment is in this thread. @mastermind


I keep asking, what about the classic of 2022 and y’all keep ignoring the question because y’all only care about your situation.

.

What’s crazy is that I don’t even believe Student loan reform would that be difficult to address

Give current borrowers credit for all interest paid and charge it directly to the principle

lower the interest rate and make it fixed

let everyone get PSFL and lower the people that currently qualify to 60 payments

Force colleges to change the prices of majors by lowering how much you will lend based on major.

 

[FAH1223]

So glad Elizabeth Warren knee capped him part x1099