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Empty Promises or Possible student debt cancellation?

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  • Empty Promises or Possible student debt cancellation?

    Warrn and Sanders both have proposed cancelling student loan debt; see Wapo article.

    https://www.washingtonpost.com/business/economy/sanders-to-propose-canceling-entire-16-trillion-in-us-student-loan-debt-escalating-democratic-policy-battle/2019/06/23/1eed053a-9561-11e9-aadb-74e6b2b46f6a_story.html?utm_term=.c48273eb888a

    Empty Promises or Possible student debt cancellation?

  • #2
    Empty promises. Only way is if they get both houses and the presidency, but even then, who's gonna fund it? Oh ya.. "the rich" ?

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    • #3
      Warren has promised a lot of different people a lot of money. So has Sanders. It's just election pandering. But, if they do cancel student debt, I'll be expecting my check for $217k.

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      • #4
        Dave Ramsey had a nice discussion of this in one of his shows.   Why would you cancel previous student debt while still issuing new student debt?   It's like acknowledging that the previous student debt was a mistake, unsustainable, and harmful so it has to be forgiven, while issuing new student debt for more students to borrow more money.   I don't think that you have to be an economist to see what will happen if students believe that there is a chance that their school debt will be forgiven or taken care of by the government, they will borrow more.  Why limit your borrowing if there is a chance that Elizabeth Warren will pay it off for you?    I honestly can't tell if some of these politicians are too blind to see the adverse effects of their policies or they know what their policies would do but want to propose them anyways.    It's very dangerous, this rhetoric, and when implemented, usually ends up harming the people they supposedly want to help.  They are trying to make people dependent on the government for help.  If you go to Elizabeth Warrens website, there is an income phase out which is another dis-incentive for people to work more.  It's like welfare, if you provide somebody with $5,000 dollars because they make $25,000, they are going to keep making $25K so that they can keep receiving their 5K from the government.  They are not going to pursue a job that pays 27K because they will have to work more and end up losing money, even though the job paying 27K could lead to job paying 40 K in a few years.    That's just looking at the effects on the individual, not even considering that the government does not have the funds to pay for these promises as it cannot even pay for the promises already made.   Even if you take away every tax cut that both parties have enacted and raise taxes on everyone to balance the budget, we still have 20 trillion we already owe before we start adding on another 1.5 trillion that people borrowed for themselves.    It just goes against a basic sense of fairness as well, there are lots of students who either chose cheaper schools, worked more hours, applied for more scholarships, and borrowed less, I don't see why they should be expected to turn around and pay for their classmates that borrowed more.   Case in point:

        http://money.com/money/5647242/student-debt-money-makeover/

        I can't believe this guy wrote an article expecting people to be motivated for our taxes to be used to pay his debt.  It's like a poster child for why we should get the government out of the student debt business, so we don't have to pay some 235 thousand for everybody to get a masters degree that he had to get and has no plans on paying back due to getting a job that pays some 50 K job.   Maybe don't borrow 235 K to get a degree for a 50 K paying job instead?

         

         

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        • #5
          I just watched the video in that link as well, it is a really great example of the type of voters Warren/Sanders are pandering to, I'd highly recommend people watch the video to see where people think our tax money should be sent to

          http://money.com/money/5647242/student-debt-money-makeover/

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          • #6
            Empty promises. Just pandering to the hard core left for the primary. A very Trump-like movement on the left. The loudest get the most air and press and build up a loyal following. I doubt that all of the Democrats would go along with it, and that's if they get a majority in the Senate, an uphill battle in its own right.

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            • #7
              The level of ignorance on this issue is astounding. We have a public that is clueless on the underlying causes of rising student loan debt and who are all too willing to accept “free” handouts from the same institution that gave them the problem in the first place. It’s easy to pander when people are so naive. And even if in private conversation these politicians sing a different tune all the doubling down on stupid they do during these campaigns locks them into a bad position. Warren and Sanders are the most egregious offenders, but nearly all the top Democratic contenders have offered up some form of doubling down whether it be through paying down the cost of college and/or increasing PSLF.

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              • #8




                Empty promises. Only way is if they get both houses and the presidency, but even then, who’s gonna fund it? Oh ya.. “the rich”
                Click to expand...


                Ding ding ding … it is just a strategy. People always vote to get themselves free stuff. The problem occurs once the politicians are obligated to give it.

                https://www.whitecoatinvestor.com/forums/topic/is-now-the-time-to-save-even-more/#post-209622

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                • #9




                  Empty promises. Just pandering to the hard core left for the primary. A very Trump-like movement on the left. The loudest get the most air and press and build up a loyal following. I doubt that all of the Democrats would go along with it, and that’s if they get a majority in the Senate, an uphill battle in its own right.
                  Click to expand...


                  This makes "The Wall" look like a picket fence.

                   

                   

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                  • #10
                    Not to predict any political wins (we know what happens when we predict based on rhetoric or even legit polls lol...)

                    Also, I've heard the president with the education secretary can cancel the debt without congress:

                    "Higher Education Act in 1965 gives the secretary of education the power to write off federally owned student debt unilaterally, under the “compromise and settlement” provision. The Department of Education could also purchase the roughly $64 billion in privately held student debt, then use the same authority to write it off."

                     

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                    • #11
                      Term limits cannot come soon enough that's all I have to say for every branch of government

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                      • #12
                        If there were term limits imagine all the campaign funds raised that can be used for other benefit of society. Think about all the lobbyist groups that would probably cease to exist. Trillions of savings.

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                        • #13
                          not sure lobbyists would go away with term limits, but they should probably just be illegal out right. Supreme court really needs some kind of limits.

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                          • #14
                            Serving for life is a little antiquated.  Health used to limit this to a reasonable time frame.  Now all bets are off.

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                            • #15
                              Meh, politicians gonna politic. It'll be interesting to see what Frankenstein monster of a solution one of the 20 democrats comes up with this week. I'm assuming we will only be afforded to watch 5-6 of them, with the others mostly watching.

                              What if interest payment deduction didn't have a income cap? You put a cap on the loan amount you get a deduction from (sort of like a 750k mortgage cap). You could limit to the original loan amount, and not the loan + capitalized interest.

                               

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