Biden Cancels $1.3 Billion Of Student Loans — His Plan For Student Loan Cancellation Is Becoming Cle

[gwb-trading]

Borrowers will qualify for student loan forgiveness under Biden’s plan if they made less than $125,000 (or less than $250,000 if they are married) in either 2020 or 2021. All government-held federal student loans, including undergraduate, graduate, and Parent PLUS loans, are potentially eligible for relief.


Where does it say that low income minorities are excluded? Because if it does specifically exclude them that is wrong but just because a study claims it will exclude them when the requiremens dont say that, I want to know the factual basis for the claim.

(we all know studies have no factual basis, they are hypothesizations based on forecasting data....)

Let's say President Biden now offers a mortgage relief program where the government pays off 20% off of your mortgage amount if you own a house. It is limited to those with up to $400K in income and homes worth less than $1.5 million.

Tell us -- does this mortgage relief program disproportionately help white home owners over black homeowners in terms of their average sized relief.

Let's us know what any study on this mortgage relief proposal would show and why the study would be considered inaccurate once the program is implemented.

 

[El OchoCinco]

yeah no bias here..

CBO didnt confirm anything....but the partisan committe for a responsible federal budget took the info to support their own opinion...


Debt Cancellation is Too Costly, CBO Confirms
SEP 26, 2022
OTHER SPENDING
Today, the Congressional Budget Office (CBO) estimated that the Administration’s proposal to cancel up to $10,000 or $20,000 of debt per student loan borrower and extend the current pause would cost $420 billion – slightly higher than our preliminary combined estimates of $350 to $410 billion. Its estimate does not include the cost of the Administration’s income driven repayment (IDR) policy, which could add another $90 to $190 billion in total costs.

We’ve previously shown that the Administration’s student debt proposals would be costly and inflationary, would drive up higher education costs and encourage low-value degrees,and would deliver large benefits to those with high lifetime earnings. The following is a statement from Maya MacGuineas, president of the Committee for a Responsible Federal Budget:

CBO’s new estimate confirms the outrageous cost of the White House plan to cancel large amounts of student debt, by executive order, to nearly all borrowers almost regardless of need. The debt cancellation and pause alone will cost $420 billion – a bit more than we previously thought –and costs could reach $510 to $610 billion with their IDR changes. The Biden Administration’s failure to release their own cost estimate should have been a red flag.

As CBO’s estimates help confirm, the President’s student debt plan would wipe out the ten-year savings from the Inflation Reduction Act twice over, worsen inflationary pressures, and deliver benefits to millions of Americans with advanced degrees in upper-income households.

This might be the most costly executive action in history. It’s unacceptable that the President would implement it without offsets and without Congressional approval. Including these actions, the President has now added nearly $4.9 trillion to ten-year federal deficits through legislation and executive actions.

With inflation at a 40-year high and the national debt approaching record levels, we shouldn’t be adding to deficits – certainly not by executive fiat.

 

[Cuddles]

The first issue is that debt cancellation requires an application, which is likely to be a more significant barrier to lower-income borrowers with fewer resources, particularly those who have long been in default or forbearance and are thus detached from the system

So because you have to apply for the loan forgiveness it discriminates against minorities.....

wow......poor people dont get mail I guess...the same poor people who attended a college and seemed to navigate college suddenly cannot fill out an application.... cannot call their financial aid office...

weird how an application is not an imposition to voters exercising a right being forced to get an ID but is an imposition on debt relief

 

[El OchoCinco]

Let's say President Biden now offers a mortgage relief program where the government pays off 20% off of your mortgage amount if you own a house. It is limited to those with up to $400K in income and homes worth less than $1.5 million.

Tell us -- does this mortgage relief program disproportionately help white home owners over black homeowners in terms of their average sized relief.

Let's us know what any study on this mortgage relief proposal would show and why the study would be considered inaccurate once the program is implemented.

This is not DisneyWorld so I dont deal in fantasies...you want me to invent a program and then invent a study to prove the program hurts minorities?

wtf?

Biden's plan is good or bad based on whether hand waving $10,000 - $20,000 is a good idea or not. I dont think it is because it does not fix the problem just throw money to get votes.

To say it discriminates agaisnt minority poor people makes no sense unless you show factual requirements of the program..not hypothetical bullshit from a biased thinktank..

 

[El OchoCinco]

weird how an application is not an imposition to voters exercising a right being forced to get an ID but is an imposition on debt relief

it is always convenient when something is not a barrier and when it is amirite....

poor people who apparently went to college are deemed too stupid to apply for loan forgiveness right?

 

[Cuddles]

it is always convenient when something is not a barrier and when it is amirite....

poor people who apparently went to college are deemed too stupid to apply for loan forgiveness right?

didn't they use that same arguments (too stupid) to keep blacks from getting freedom, desegregation, voting rights, civil rights, etc, etc...?

 

[gwb-trading]

This is not DisneyWorld so I dont deal in fantasies...you want me to invent a program and then invent a study to prove the program hurts minorities?

wtf?

Biden's plan is good or bad based on whether hand waving $10,000 - $20,000 is a good idea or not.

To say it discriminates agaisnt minority poor people makes no sense unless you show factual requirements of the program..not hypothetical bullshit from a biased thinktank..

Well I disagree -- IMO Biden providing $10K or $20K is in student loan relief is very poor government policy and a slap to the face of the many parents & students who saved their own money -- forgoing other things like vacations & new cars -- in order to go to college without loans. In other words -- this student loan relief plan is a kick to the ass of financially responsible people.

I would support proposals to make 2 year public community colleges tuition free (funded by the federal government) and even grants for 4 year programs which helped the public need (e.g. teachers) --- but Biden's student loan relief is a complete mess on top of being a giveaway to many people who don't need the relief (even though everyone likes free money).

 

[El OchoCinco]

Well --- go read the study directly for yourself
https://www.crfb.org/blogs/bidens-student-debt-cancellation-plan-still-regressive

Plus the other sources in the article

The Top 20% just 6X the benefits out of the student debt relief deal.
https://fee.org/articles/top-20-get...-cancellation-than-bottom-20-new-study-finds/

The Distributional Effects of Student Loan Forgiveness
https://bfi.uchicago.edu/wp-content/uploads/2020/11/BFI_WP_2020169.pdf

The BFI study is from 2021 before this plan was officiall announced so the study does not look at Biden's plan, it hypothesizes in general.

 

[gwb-trading]

The BFI study is from 2021 before this plan was officiall announced so the study does not look at Biden's plan, it hypothesizes in general.

Biden's and the Democratic party's proposal was well-known at this time in 2021. A study which looks at the distribution and impact of various levels student loan relief is very pertinent and meaningful.

 

[El OchoCinco]

Well I disagree -- IMO Biden providing $10K or $20K is in student loan relief is very poor government policy and a slap to the face of the many parents & students who saved their own money -- forgoing other things like vacations & new cars -- in order to go to college without loans. In other words -- this student loan relief plan is a kick to the ass of financially responsible people.

I would support proposals to make 2 year public community colleges tuition free (funded by the federal government) and even grants for 4 year programs which helped the public need (e.g. teachers) --- but Biden's student loan relief is a complete mess on top of being a giveaway to many people who don't need the relief (even though everyone likes free money).

I already said hand waving a forgiveness of $10k - $20k doesnt fix the problem but throws money at it in an election year. I also said no federal backed loans should ever be given for private universities but only State and Community college schools.

But hypothetical studies that claim the poor minorities dont benefit really is just political messaging from biased studies. There is no way to know who this will benefit simply because it covers people with loans just entered into as well as people sitting on loans 8 - 10 years as well as loans of $100,00 and loans of $20,000 etc...

There is nothing in the program that cuts off poor minorities and a study that says that poor cannot fill out applications or most poor people dont go to college just shows the low intelligence of the premise.