Student Loan Fiasco (1 Viewer)

[Steve R.]

Gutfeld: How can The Squad do this with a straight face? | Fox News Video

'Gutfeld!' panel discusses the Squad's advocacy for widespread student loan cancellation.

video.foxnews.com

A very good review concerning the idiocy of cancelling student loans.
The monologue was a bit short on the concept that one needs to save money before buying. That used to be one of the concepts underpinning our culture. Now its borrow first whether you can afford the debt burden or not. Instant gratification over responsible preparation.

Forgiving student loans also creates an extreme moral hazard. You are helping some at the expense of hurting others. Why should a person who did not save money to go to college have their debt cancelled, but a person who did save money gets no benefit?

Link to a prior post on student loans.

The Case Against Student Loan Forgiveness

There's a better and cheaper way to help student borrowers.

www.forbes.com

Two under-reported themes:

• The federal government nationalized the student loan programs. Essentially removing these loans from the capitalistic system. Those loaning the money have no incentive to verify if the person getting the loan can pay it back. Additionally those making the loans bare no financial risk resulting from a default. Liability for loans that are defaulted or forgiven become the responsibility of the taxpayer.
• The institutions of higher learning, where the students (revenue units) go, are receiving "free" money. They have no incentive to control costs or to even reject students who may eventually fail. Consequently they can raise tuition with little negative repercussions to them. There has been some increasing recognition that the institutions of higher learning should have a degree of responsibility and even liability for student loan defaults.

 

[The_Doc_Man]

A general loan amnesty undercuts the financial system badly and is a back-door method of redistribution of wealth. It is yet another step towards heavy-handed socialism, where people who have worked like hell to build up the capital implied by having a loan institution must be second-class business-people. Yet another reason why the pendulum needs to swing very far right in the next election.

Having said that, I would forgive one class of student debt - loans to fly-by-night institutions that have poorly structured classes with no added value to the students. The inexperienced students don't always know how to tell that a particular school is just a facade, a sham, a fraud. It would perhaps give incentive to the loan companies to investigate the schools a bit more before offering loans. It would also make it worth their while to file charges and send out bounty hunters. (Sic 'em, Dog!)

 

[Steve R.]

Having said that, I would forgive one class of student debt - loans to fly-by-night institutions that have poorly structured classes with no added value to the students.

This reinforces the thread: Massive Government Spending Means Fraud. Whenever the government tosses money to supposedly helpful programs, such as student loans, the shady opportunists are there to immediately sell "opportunities" to the gullible.

 

[NauticalGent]

Just another act in the Shit-Show. Good God, what is going on?

 

[AccessBlaster]

Might as well defund the police while you're at it!

 

[Steve R.]

Might as well defund the police while you're at it!

A tremendous irony in that. Help the criminals (those who corrupt the system, besides the obvious physical thug) with enhanced opportunities and neuter those citizens who are responsible. The Covid mandates are punishing the law-abiding, but the liberal prosecutors don't file criminal charges for theft or left wing rioting. I suppose you were leading up to that.

 

[Pat Hartman]

Cancelling student debt makes as much sense as preventing owners from evicting non-paying tenants. I think we can all agree that almost NONE of the left's programs any longer make any sense at all. There was a time when I disagreed but at least thought their heart was in the right place but not any more. It makes no sense to have a welfare state and open borders. We have more than enough Americans who need our help. We don't have to invite the world in too. These people aren't stupid. Of course they want free stuff and are willing to risk their lives and the lives of their children to cross the border any way they can. Just look at where people are coming from. The "wetbacks" used to be from Mexico and Central America. Now they come from Africa, Asia, Europe, and South America as well. Pretty much everywhere except Australia and the South Pole. But given the way Australia has gone off the cliff, I'm guessing we'll see an influx of Australians too.

Our children no longer understand that the government makes NOTHING. It earns NOTHING. It only TAKES. It takes from the hardworking, honest, industrious people and gives to the nar-do-wells and special interest groups, and people who enter the country illegally to get the good stuff. Nothing the government does is charitable. It STEALS from me at gunpoint and gives MY money to others it thinks are more worthy. That is not the same as me willingly contributing to the overhead of running a country and maintaining a standing army and international relationships, etc. and me willingly giving to charities I feel are worthy.

I really have no (OK not much) problem with government (me) supporting people who actually cannot care for themselves but I seriously object to supporting people who don't feel like working which is what the system has devolved to. This is the slippery slope we always talk about. The government should NEVER have EVER gotten into the "charity" business. Charity used to be provided willingly by those who could contribute and the recipients used to be grateful and anxious to pay it forward. Once the government got in, they took it over. But, since it isn't their money, they do not spend it wisely the way you and I would and waste is rampant.

 

[Isaac]

concur with all of the above. like i've said before, a new class of lazy citizens.
when you make a decision / calculation to take on a certain amount of debt, ya better be sure it's worth it. everyone has the chance to make thoughtful decisions before investing.

a lot of people thought maricopa az would be the new big thing as a fast growing suburb and bought houses there 10+ years ago.
it never took off (relatively speaking). but chandler, goodyear, gilbert, the opposite, some of the fastest appreciating real estate in the USA.

should the maricopa investors' debts be forgiven, but not the other ones? heck no.

i mean gee, if you screw up BADLY enough, we already have a system where you admit your fault, take a major hit to your credit, and get the chance to start new. It's called CHAPTER 7
maybe throw Student Debt in there instead of excluding it - that's as far as I would contemplate going

 

[Pat Hartman]

Student debt used to be dischargeable during bankruptcy. That was changed when the government took over the debt and cut the third party lenders out of the equation.

 

[Steve R.]

A great decision by the US Supreme Court. Court decision attached.

Supreme Court rules against Biden student loan debt handout

The U.S. Supreme Court ruled in cases dealing with President Biden's student loan debt cancelation program, which had been on hold pending a decision.

www.foxbusiness.com

The Supreme Court ruled Friday that the Biden administration cannot go forward with its student loan debt handout program.
In a 6-3 decision, the court held that federal law does not allow the Secretary of Education to cancel more than $430 billion in student loan debt.

Supreme Court Strikes Down Biden's $430 Billion Student Loan 'Forgiveness' Plan

The Supreme Court struck down President Joe Biden's student loan forgiveness plan on Friday, ending a $430 billion debt writeoff.

www.breitbart.com

In her dissenting opinion, Justice Elena Kagan — the former dean of Harvard Law School, responsible for provoking hefty student loan debts among graduates — said that the Court had “exceed[ed] its proper, limited role in our Nation’s governance” — though she seemed unconcerned that the president had done exactly that.

Robert addressed Kagan’s strident argument in his own opinion, noting: “It has become a disturbing feature of some recent opinions to criticize the decisions with which they disagree as going beyond the proper role of the judiciary. … Reasonable minds may disagree with our analysis — in fact, at least three do. … We do not mistake this plainly heartfelt disagreement for disparagement. It is important that the public not be misled either. Any such misperception would be harmful to this institution and our country.”

When a Democrat is president, those on the left favor dictatorial presidents who ignore the Constitution. The Biden administration, when it came to cancelling student loans and cancelling equal rights, abuses its presidential authority. "Biden's Education Department had already been exploring potential workarounds to offer handouts via other means in anticipation of a ruling against the administration." The Biden administration seeks to circumvent (ignore) Congress and even the findings of the court system. Biden, how about working with Congress to get your requested authority?

PS: I wonder how many of those who have student loans saved for this? Additionally, what will the impact be on the economy once those with student loans finally have to start paying once again?

 

[The_Doc_Man]

Between the affirmative action decision and the student debt decision, some young USA people will suddenly re-think going to college. Which means that college presidents are having various types of conniptions when contemplated the potential reduction in enrollment. They may have to limit their spending to actually useful courses. <gasp>

 

[Steve R.]

SCOTUS Evokes Pelosi in Decision Against Student Loan Cancellation: President 'Does Not Have That Power'

Chief Justice John Roberts cited former House Speaker Nancy Pelosi in the Supreme Court's student loan decision Friday.

www.breitbart.com

Jonathan Turley says Biden's student debt forgiveness stood little chance before SCOTUS: 'Bordered on obscene'

Fox News contributor Jonathan Turley joined "America's Newsroom" to react to the Supreme Court decision that Biden's student loan bailout plan is unconstitutional.

www.foxnews.com

JONATHAN TURLEY: This is a huge defeat for the Biden administration, politically and legally. It is only the latest such defeat where the president has overreached on his authority. Previously, the president argued that he could use the CDC as the basis for the eviction moratorium during the pandemic, even though many of us said that he clearly lacked that authority, he went ahead and did it anyway. In fact, he admitted that by the time the courts might strike down his efforts, he could get a lot of money out the door. Well, that's a level of contempt that does not sit well with courts. In this case, you have the Heroes Act, which is just a few pages long, and was clearly designed to help people who are serving abroad in military conflicts so that they didn't have to worry about their college tuition payments. The use of the Heroes Act for this massive loan forgiveness program was absurd, and bordered on the obscene. I mean, it was clear that they could not get this through Congress and that they decided to come up with this novel theory to circumvent Congress. What was really unbelievable to watch is that the Democrats applauded him for that. He essentially made Congress a functional nonentity and half of Congress gave him a standing ovation.

When a Democrat is president, the Democrats embolden a dictatorial president who will circumvents both Congress and the Judicial process. Seems that the Democrats, when they are in charge, really don't believe in the democratic process. Democrats are the threat to democracy, A dictatorial president is an abuse of power under the Constitution.

A core issue in the whole student loan scandal that gets frequently kicked aside, is that students have become nothing more than revenue units to the colleges. With government backed student loans, admitting the maximum number of students, whether qualified or not, to college becomes the goal as the colleges get paid no mater what. Moreover, there is no incentive for the colleges to control tuition costs (after all the students are not responsible (sarcasm)). At a minimum student loan laws should be revised to make colleges liable when students fail and/or drop out. Better yet, government backed student loan programs should all be abolished.

 

[Steve R.]

Recall this lovely clip featuring Elizabeth Warren. There is significant moral hazard should student debt be transferred to the taxpayer.

 

[Pat Hartman]

Government interference has raised the cost of tuition to obscene heights. My daughter and my granddaughter went to the same state college. It was close enough to commute so they both lived at home. In 1985, my daughter's tuition was $1500 per semester. In 2021, my granddaughter's tuition was $15,000 per semester!!! According to the inflation calculator, tuition in 2021 should have been ~ $2600. How did tuition get from $2600 to $15,000 per semester, the government "helped". Thanks big government. Please stop "helping".

 

[Steve R.]

Biden brags about defying Supreme Court and relieving ‘136 million’ student loan debts - Washington Examiner

President Joe Biden bragged Wednesday about defying the Supreme Court over student loans and appeared to slip up verbally in doing so. The Supreme Court struck down Biden's $400 billion student loan forgiveness plan in June, ruling it was an illegal use of the president's powers. But since then...

www.washingtonexaminer.com

"I went to the Supreme Court to eliminate student debt out there,” Biden said to applause at a Bidenomics-focused speech in Milwaukee. “Guess what? The Supreme Court ruled against me, but I still got 136 million people’s debt relieved.”

The article's focus is "off" since it focuses on Biden getting the numbers wrong once again. The article should have focused more on Biden's extreme arrogance. Here he is bragging that the is stiffing the US Supreme Court, an equal branch of the US government, who told Biden he did not have the authority to "forgive" student debt.

Two quick outfalls from that:

• Where is the rest of the media condemning Biden for his lawless act? Seems that Biden should be under a lot of political pressure for this. This should be added to the impeachment articles that the Republicans are currently preparing.
• Should a Republican win the White House, would they be able to "claw back" (reinstate) the loans?

For an analogous historical perspective.

 

[Isaac]

Government interference has raised the cost of tuition to obscene heights. My daughter and my granddaughter went to the same state college. It was close enough to commute so they both lived at home. In 1985, my daughter's tuition was $1500 per semester. In 2021, my granddaughter's tuition was $15,000 per semester!!! According to the inflation calculator, tuition in 2021 should have been ~ $2600. How did tuition get from $2600 to $15,000 per semester, the government "helped". Thanks big government. Please stop "helping".

You can get the first two years at community colleges which are STILL next-to-free, they are so cheap.
You can then do the next two years part time at a state-subsidized school (not a high rolling private U) without living on campus at a pretty affordable rate. Graduate with maybe $10 or $20k debt - MAYBE, if you get zero help and have terrible grades.

And that is ALL assuming you get zero help. the average hard working person who studies in high school ought to be getting about half of it scholarshipped, which makes it even cheaper than I've described.

I agree that IF you go to a 4-year private university and live on campus, costs have risen way too much. That said, I have zero sympathy for these people with a "Marketing" or "Business Administration" degree with 100k in debt. They obviously desperately needed to be taught business administration but if only they had the common sense prior to agreeing to the loan....

In my state you can be a Certified Occupational therapy ASsistant with a 2 year degree at community college that costs about $7,000 over the courase of the entire two years. After that you can work in a hospital or post-acute setting and make about $45/hour. That's just one of dozens of opportunities.

 

[Steve R.]

It's an election year. And despite the US Supreme Court saying that Biden can't "forgive" student loan debt, Biden does it anyway to "buy" votes. Biden is a lawless President.

Biden Transferring Student Debt from 153K Borrowers, Notifies in Emails

More than 150,000 borrowers are receiving emails from Joe Biden stating that all or part of their “federal student loans will be forgiven."

www.breitbart.com

Biden brags about defying Supreme Court and relieving ‘136 million’ student loan debts - Washington Examiner

President Joe Biden bragged Wednesday about defying the Supreme Court over student loans and appeared to slip up verbally in doing so. The Supreme Court struck down Biden's $400 billion student loan forgiveness plan in June, ruling it was an illegal use of the president's powers. But since then...

www.washingtonexaminer.com

https://twitter.com/i/web/status/1760505111481065911

 

[Pat Hartman]

How can this go on? Why does Congress allow it? What happened to "checks and balances". That is the flaw with the Constitution. It assumes honest and trustworthy leadership. It assumes that the elected officials would have the interests of the country and its citizen (all of them) in mind when conducting its business.

They're all Feckless pieces of dog poo and I hate Trump for making me see it!!!!!!!!!!!!!!!!!

 

[Isaac]

More big-money solutions from Democrats who hope everyone doesn't notice all this Love is coming from our paychecks.

 

[Steve R.]

It's an election year. And despite the US Supreme Court saying that Biden can't "forgive" student loan debt, Biden does it anyway to "buy" votes. Biden is a lawless President.

Biden Transferring Student Debt from 153K Borrowers, Notifies in Emails

More than 150,000 borrowers are receiving emails from Joe Biden stating that all or part of their “federal student loans will be forgiven."

www.breitbart.com

Biden brags about defying Supreme Court and relieving ‘136 million’ student loan debts - Washington Examiner

President Joe Biden bragged Wednesday about defying the Supreme Court over student loans and appeared to slip up verbally in doing so. The Supreme Court struck down Biden's $400 billion student loan forgiveness plan in June, ruling it was an illegal use of the president's powers. But since then...

www.washingtonexaminer.com

https://twitter.com/i/web/status/1760505111481065911

I missed making this obvious jab at the time I originally posted. Biden, when it comes to illegal immigration (falsely) asserts that he is wimpy old man powerless to prevent it. Yet when it came to student loans, Biden, all of a sudden is a chest thumping macho man who has the power (despite the fact that the Supreme Court ruled against him). For Biden the law is a pretzel to be manipulated for the benefit of the Democratic party.