112th Congress Proposes Relief for Student Loan Borrowers
Posted: Wed Jun 22, 2011 11:41 am
This is good.KingMenes wrote:FYI: http://www.usnews.com/education/blogs/s ... -borrowers
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This is good.KingMenes wrote:FYI: http://www.usnews.com/education/blogs/s ... -borrowers
romothesavior wrote:This is good.KingMenes wrote:FYI: http://www.usnews.com/education/blogs/s ... -borrowers
NYC Law wrote:romothesavior wrote:This is good.KingMenes wrote:FYI: http://www.usnews.com/education/blogs/s ... -borrowers
I just don't think we should scare people out of investing in education when there are so many other things to invest in that are much more detrimental to society and yet remain dischargeable.bjsesq wrote:Immediate self-interest aside, why is this good? I mean, on a large scale. Why is this good policy?
Considering the positive outcomes of continuing education are growing smaller and smaller by the day, why not scare some people out of it?NYC Law wrote:I just don't think we should scare people out of investing in education when there are so many other things to invest in that are much more detrimental to society and yet remain dischargeable.bjsesq wrote:Immediate self-interest aside, why is this good? I mean, on a large scale. Why is this good policy?
Do they allow people to consolidate into private?The Gentleman wrote:So people who borrow 200k from private lenders will receive a safety net by being able to discharge their debt in bankruptcy while people in 200k of GRADPlus loan debt will still be screwed? Nice move Congress. Way to devalue federal student loans relative to private ones.
This. Also, it will contribute to the continuing artificial inflation of the education bubble. The more the government subsidizes/incentivizes educational borrowing, the more we'll see tuition continue to skyrocket.AreJay711 wrote:Idk it will only make the interest rate on private student loans increase.
It's not like anyone takes bankruptcy lightly. Anyway, federal loans are much more lenient with repayment and even forgiveness, in some cases.The Gentleman wrote:So people who borrow 200k from private lenders will receive a safety net by being able to discharge their debt in bankruptcy while people in 200k of GRADPlus loan debt will still be screwed? Nice move Congress. Way to devalue federal student loans relative to private ones.
That would just be detrimental on a societal level for various reasons. One being the income/class gaps. The poor would be most affected and unlikely to borrow for school while the rich would, thus widening the income disparity. Plus if you have more people in higher ed, you're more likely to tap into intellectual resources that might otherwise go unnoticed.bjsesq wrote:Considering the positive outcomes of continuing education are growing smaller and smaller by the day, why not scare some people out of it?NYC Law wrote:I just don't think we should scare people out of investing in education when there are so many other things to invest in that are much more detrimental to society and yet remain dischargeable.bjsesq wrote:Immediate self-interest aside, why is this good? I mean, on a large scale. Why is this good policy?
No.Verity wrote:It's not like anyone takes bankruptcy lightly. Anyway, federal loans are much more lenient with repayment and even forgiveness, in some cases.The Gentleman wrote:So people who borrow 200k from private lenders will receive a safety net by being able to discharge their debt in bankruptcy while people in 200k of GRADPlus loan debt will still be screwed? Nice move Congress. Way to devalue federal student loans relative to private ones.
Thomas Sowell disagrees.NYC Law wrote:Education shouldn't be as subjected to market pressures and a greater public system would help control prices a bit.
From the article:ToTransferOrNot wrote:No.Verity wrote:It's not like anyone takes bankruptcy lightly. Anyway, federal loans are much more lenient with repayment and even forgiveness, in some cases.The Gentleman wrote:So people who borrow 200k from private lenders will receive a safety net by being able to discharge their debt in bankruptcy while people in 200k of GRADPlus loan debt will still be screwed? Nice move Congress. Way to devalue federal student loans relative to private ones.
I mean, the 10-year public interest forgiveness is one thing. The 25-year forgiveness comes with discharge of indebtedness income: you basically convert your student loans into a freaking IRS tax lien (that is also dischargeable - and the IRS is far more... demanding... of their money).
You missed his point. He was talking about how forgiveness is not really forgiveness because of the huge income you have to report creating a big tax liability after the 25-year discharge of debt.Verity wrote:From the article:ToTransferOrNot wrote:No.Verity wrote:It's not like anyone takes bankruptcy lightly. Anyway, federal loans are much more lenient with repayment and even forgiveness, in some cases.The Gentleman wrote:So people who borrow 200k from private lenders will receive a safety net by being able to discharge their debt in bankruptcy while people in 200k of GRADPlus loan debt will still be screwed? Nice move Congress. Way to devalue federal student loans relative to private ones.
I mean, the 10-year public interest forgiveness is one thing. The 25-year forgiveness comes with discharge of indebtedness income: you basically convert your student loans into a freaking IRS tax lien (that is also dischargeable - and the IRS is far more... demanding... of their money).
"Bankruptcy protection is particularly important when it comes to private and commercial student loans because these loans are not eligible for the repayment assistance, forgiveness, and relief programs that accompany federal student loans. For example, neither the Income-Based Repayment plan nor the Public Service Loan Forgiveness program is available for commercial loans. Access to these and other forgiveness programs is a significant factor to consider when choosing which types of student loans you should borrow to help finance your higher education."
Public loans are by and large easier to keep out of bankruptcy. As far as leniency goes, you won't find the rough acceleration clauses that lurk in some private loans.
Sounds a lot like the argument the University of Phoenix makes. I'll respond to you the same way I respond to them: most never graduate. many of those that do end up unable to pay off the debt to to poor job prospects. The poor will always lose. Always.NYC Law wrote:That would just be detrimental on a societal level for various reasons. One being the income/class gaps. The poor would be most affected and unlikely to borrow for school while the rich would, thus widening the income disparity. Plus if you have more people in higher ed, you're more likely to tap into intellectual resources that might otherwise go unnoticed.bjsesq wrote:Considering the positive outcomes of continuing education are growing smaller and smaller by the day, why not scare some people out of it?NYC Law wrote:I just don't think we should scare people out of investing in education when there are so many other things to invest in that are much more detrimental to society and yet remain dischargeable.bjsesq wrote:Immediate self-interest aside, why is this good? I mean, on a large scale. Why is this good policy?
But I think the greater issue here is tuition outpacing inflation and rising at rapid rates. Education shouldn't be as subjected to market pressures and a greater public system would help control prices a bit.
I get it, but as long as you're not a total fuckhead, there are many more ways to avoid getting to that point. Take advantage of the loan repayment plans, defer due to hardship and look for a job, consider working for a non-profit so the loan will be forgiven, etc.D-hops wrote:You missed his point. He was talking about how forgiveness is not really forgiveness because of the huge income you have to report creating a big tax liability after the 25-year discharge of debt.
Haha thanks for the laugh. And you're probably right in many instances, my own perspective may be slightly skewed since I come from a single parent household that was greatly altered by higher education (a community college education for that parent, but it still made the difference in income between living below the poverty line to living roughly middle class).bjsesq wrote: Sounds a lot like the argument the University of Phoenix makes. I'll respond to you the same way I respond to them: most never graduate. many of those that do end up unable to pay off the debt to to poor job prospects. The poor will always lose. Always.