Asking about Student Loan Debt "Forgiveness"

False. The cost of the debt is passed on to taxpayers.

The answer is they're not forgiving it. You think greedy colleges are willing to give away money for free or something? What were you, born yesterday? These places are FOR PROFIT. Why do you think they cost so much in the first place? Everybody's asking Elizabeth Warren who's paying for it and she's not answering. There's a reason for that.

The colleges were paid when the loans were extended - they no longer play into the equation.

The fed owns the loans, and can forgive them outright.

That's obviously not what's happening here. The fed are not that benevolent. Again, you sound like you were born yesterday on this one. We're talking about the most aggressive collections agency in the world. These people will hunt you if you move out of the country for ten years or more. If the fed did forgive all that debt it would be insolvent.

Show your math - who pays when the fed forgives an amount that was loaned and spent years ago.

You can't even file for bankruptcy on college loans the way you can on normal debt. Isn't that interesting?

No, it isn't "interesting", it's predatory because these loans are specifically designed to put professionals into indentured servitude, "paying back" several times as much as they borrowed in interest.

That's the reason we're pushing to forgive these debts since we the people hold them and can choose to do so at any time.

You're counting on the government to do that. See, you live in this fantasy land in which the government is benevolent. The government is taking your tax dollars already and putting it into the predatory and useless colleges. Even without going you are funding a gang of nihilists who teach you useless skills and lie to you.

Nothing's free, padre. You'll learn that eventually.

I always find it funny when people don't understand that knife cuts in both directions.

We pay for lower education because we need a labor pool that can perform as functionaries, and we should pay for higher education because we need trained professionals.

The fact is, somebody is reimbursing them. The government will say it's them and take the credit but it's not them because their revenue comes from taxes. Hence I'm saying the taxpayers are footing the bill. And there's not really a good reason they should. But there are a lot of bad reasons.

No, this is the fundamental misunderstanding those against loan forgiveness seem to have - there is no reimbursing with tax dollars, it's literally forgiveness.

If you forgive a $1000 loan to your brother, who has to pay the bill? No one, because you - the person who extended the loan - are not being reimbursed, you're letting it go.

So the colleges just eat the loss? Get real. That's not happening.

No, the colleges got their money from the lenders long ago - at this point we the people hold those debts and can forgive them.

No new money goes out the door in the process, same as if you forgave your brother that hypothetical loan.

According to the Committee on Education & The Workforce:

Myth: Student loan forgiveness is critical to ensuring millions of Americans are not buried under a mountain of debt.

Fact: There is no such thing as “forgiveness,” and student loan debt does not go away—it remains on the federal government’s books. Cancelation alone is estimated to cost at least $400 billion dollars. The Biden administration simply moved the loan debt, agreed to by millions of student loan borrowers, onto the backs of American taxpayers. Biden’s student loan bailout will cost every taxpayer, even those who never went to college, at least $2,500.

You're using House GOP talking points as a source of facts?

They're lying to you.

I agree with you 100% on predatory loan practices but is there a plan to address those who were fiscally responsible and paid back their loans? How is "student loan debt forgiveness" fair to those people who just sunk a lot of work and resources into that?

End of the day the fed just gave the amount of money in loans incurred by the students to the colleges. Do you think that doesn't cost anything? Do you seriously think that doesn't cost anything? That's what I'm saying. It's not "forgiveness." It's cancellation and it costs money. It adds to the debt. It comes out of somewhere. You need to learn about accounting and economics. Nothing is free, my friend.

The money was already spent, and its already part of the debt - forgiveness changes nothing there.

Again, show your math, because you're arguing on behalf of a predatory system that saddles young professionals with decades of debt amounting to several times the original loan amount.

For example if they printed money to give to those colleges which is what you're suggesting they did then that's inflationary. Inflation is a hidden tax on you because it reduces the value of the money you have. That's a cost. Unless the fed paid the colleges with nothing. Do you think the fed paid the colleges nothing to give their students an education?

Again, the colleges were paid their tuitions long ago, so any inflation it would cause has already happened, and it would have affected not just us, but anyone with dollars (and a lot of foreign nationals and states hold those).

Any other red herring to toss in to defend this predatory pipeline redistributing wealth upward?

If it's already part of the debt then it has yet to be paid off and is therefore a problem. The upwards redistribution of wealth you're referring to is that generated by hard-working taxpayers to entitled college students who are not solvent after college because they're flush with useless degrees. Most people who go to college are of the privileged class. So that argument is also actually against you. Okay?

I'm not dragging any red herrings here. Just truth. I'm seeing things from a pragmatic perspective and you're attempting to obfuscate, lie, and pretend things are more abstract than they are. If money is free then it has no value, it doesn't spend, and it will not buy anything. There will be no labor behind it to imbue it with the value we put on it and so no goods will be produced in the first place. That's why when you see hyperinflation people end up buying loaves of bread with grocery bags full of money.

The upwards redistribution of wealth I'm talking about are predatory lenders who have paid off legislators to make their loans unable to be discharged while charging upwards of 400% interest over the lifetime of the loans.

Graduates aren't solvent because they spend decades of their careers crawling out of debt for their educations, and that's harming the economy on the whole because they aren't using their earnings buying goods and services from others, negatively impacting both GDP and tax revenues.

The entire student loan system is little more than a welfare pipeline allowing the ultra-rich to profiteer by extracting capital from a necessary service.

https://edworkforce.house.gov/news/documentsingle.aspx?DocumentID=408854#:~:text=Myth%3A%20Student%20loan%20forgiveness%20is,at%20least%20%24400%20billion%20dollars.

More in link