Biden's student loan forgiveness

[GreenJesus]

whelp since the average according to reports is 710-715 depending on which credit company 2020 report you believe, having a 799 would be a nice feat.


How do you not know i am a CEO? The point was making statements that could not be proven since he would never provide the facts needed. Also comments are made based on history of user which sometimes post very questionable statements.

Actually I just checked my FICO score and as of 3/19 it's 811.

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And you're still avoiding the big boy issue.

I mean.. the big boy issue is let's say Biden forgives all current student debt. Then what? What about the people that just paid it off last year? Should they get a refund check? Should the people going to school next year have free education from now on? Will colleges just increase the price to $100k since the government will pay for it anyway? How much of the yearly budget will be going torward this?

Honestly, probably better than building the 10,000th warhead at least.

[cubby]

I mean.. the big boy question is let's say Biden forgives all current student debt. Then what? What about the people that just paid it off last year? Should they get a refund check?

Still not the big boy question. You are avoiding and ignoring the bankruptcy issue entirely - how CC's can be BK'd out of without any material goods being recouped by the creditors, and that's perfectly ok; but student loan debt can't, because there is no material goods to be recouped.

People can even end up keeping some items they bought with CC money, even after BK'ing out of that CC debt.

[GreenJesus]

Still not the big boy question. You are avoiding and ignoring the bankruptcy issue entirely - how CC's can be BK'd out of without any material goods being recouped by the creditors, and that's perfectly ok; but student loan debt can't, because there is no material goods to be recouped.

People can even end up keeping some items they bought with CC money, even after BK'ing out of that CC debt.

Are credit cards nonrecourse? I honestly don't know. It probably depends on the credit card I guess. But that is a good point. The federal government already subsidizes student loans (lower interest rates) which has in effect raised the price of tuition since more people are able to "afford" college. Since there's still demand, the college just keeps increasing price. What will happen if the government continues to forgive student loan debt every couple years?

[Spectral]

I mean.. the big boy issue is let's say Biden forgives all current student debt. Then what? What about the people that just paid it off last year? Should they get a refund check? Should the people going to school next year have free education from now on? Will colleges just increase the price to $100k since the government will pay for it anyway? How much of the yearly budget will be going torward this?

Honestly, probably better than building the 10,000th warhead at least.

Despite the obvious and deep unfairness of extracting money from people that elected to pay off their student loans to improve the lifestyles of people that can't or won't pay them, I'd personally consider it a worthwhile tradeoff if it came with a massive rework of liability going forward. The path to preventing the sort of tuition increases that you mention while avoiding unpayable student loans in the future is simple - all student loans must have the university receiving the funds as the guarantor of the debt. If an institution is not willing to backstop loans for their product, that should tell you a fair bit about what they think of their own product.

[cubby]

Are credit cards nonrecourse? I honestly don't know. It probably depends on the credit card I guess. But that is a good point. The federal government already subsidizes student loans (lower interest rates) which has in effect raised the price of tuition since more people are able to "afford" college. Since there's still demand, the college just keeps increasing price. What will happen if the government continues to forgive student loan debt every couple years?

The same thing that happens when the government continues to allow people to buy things on credit, keep them, and then bankrupt out of that credit debt.

[Edge-]

The same thing that happens when the government continues to allow people to buy things on credit, keep them, and then bankrupt out of that credit debt.

Or businesses to buy another company with extensive debt, move all the assets over to the main company, and declare bankruptcy on the company they just liquidated so the assets they pilfered are protected.

I mean, the entire bankruptcy system is pretty much stacked against consumers and designed for large businesses.

[Zan15]

Actually I just checked my FICO score and as of 3/19 it's 811.

.

i just checked, i got promoted to chairman from CEO.... whoot!

[GreenJesus]

i just checked, i got promoted to chairman from CEO.... whoot!

Lol.. it really isn't that rare or hard to have a credit score over 800.

[Zan15]

Lol.. it really isn't that rare or hard to have a credit score over 800.

yah according to the statistics it is rare and quite hard to get.

2009 it was 18.2%
2018 it was 22%-23%
2019 it was 20%-22%
2020 it was 17%-21%
Depending on which one you want to go off.



People with an 800+ credit score also have credit card limits totaling roughly $46,700 on average, of which they generally use less than 5%, according to VantageScore.

do you realize how much income you must have to get that high in credit limits.

I know at one point i had 42k in limits with 112k in income with no debt. Even then i capped out around 780.

so 21% would make it in fact rare.

every step up from 800 it becomes even more so, only 1.2% have an 850 perfect score.

[Felya]

People with an 800+ credit score also have credit card limits totaling roughly $46,700 on average, of which they generally use less than 5%, according to VantageScore.

Mine is 8k... I bring that number down...

I’ve had it for almost 15 years... I just never had a need to ask for more and I ignore messages to update my employment info, so I can get boosted. I don’t see the point... I pay it off faster than once a month. It’s more of a security blanket when using it online and in strange places.

[Kathandira]

let's say Biden forgives all current student debt. Then what? What about the people that just paid it off last year?

I have $800 left on my 10 year loan. I will be paying it off when I get my next paycheck.

I do not expect a dime if student loans are forgiven after I pay mine off. I support the forgiveness. I paid for 10 years, and I struggled. Defaulted and had my wages garnished for months until I could get back on track. This nearly ruined me because i wasn't making enough money to cover all my bills, and my job cut our hours and salary in half.

It is because of the situation I overcame, I understand that not everyone is going to have a smooth ride. I would like to see people like myself not have to worry about this.

[Draco-Onis]

There's a set of tradeoffs there though. Some of the "best" credit cards include high interest and annual fees, but have perks that can add up to much higher value than the costs (assuming that you never actually run the interest on them). I wouldn't ever advise someone that isn't pretty financially organized to get these since it's easy to rack up high costs and not realize any benefits from them, but interest rates aren't really the only benefit you can get out of a high credit score.

I have never been into the perks but my interest rate is 14.5% and I never called to lower it, I guess if you do certain activities enough it might be worth it. I just use those high cash back cards when you pay since I am not into points.

[ghotihook]

I have never been into the perks but my interest rate is 14.5% and I never called to lower it, I guess if you do certain activities enough it might be worth it. I just use those high cash back cards when you pay since I am not into points.

I actually had to look up what my interest rate was since I've literally never paid interest since I've owned a credit card. Turns out mine is 15%.

[arandomuser]

blanket forgiveness is a political death sentence it creates resentment among people who did pay off their loans and also the biggest loan takers are people who go to higher end universities where as the vast majority of people go to more cost effective state and local colleges. Itd just be giving the gop a ton of anti elitism fodder to stoke with. it may be a good policy , but if we learned anything in politics its that feelings do really trump facts to the electorate.
but what you could do is use political capital you already have like majorities in california and new york to fund free college, which i believe is already being done

[Rasulis]

blanket forgiveness is a political death sentence it creates resentment among people who did pay off their loans and also the biggest loan takers are people who go to higher end universities where as the vast majority of people go to more cost effective state and local colleges. Itd just be giving the gop a ton of anti elitism fodder to stoke with. it may be a good policy , but if we learned anything in politics its that feelings do really trump facts to the electorate.
but what you could do is use political capital you already have like majorities in california and new york to fund free college, which i believe is already being done

The problem is a lot of people, mostly those that actually could afford to pay the tuition, ended up not having to pay those tuition.

My sister is a radiologist at UCSF hospital. She made too much to qualify for free tuition in CA.

Yet, my oldest nephew is currently on his second year in Stanford with full carry.

My youngest nephew is trying to decide between $40,000 per year scholarship at UC Santa Barbara or slightly less scholarship at UT Austin. Looks like he is leaning to Austin. I think he is trying to get away from my sister for a bit. Plus the cost of living expenses is a lot lower and the scholarship goes a lot further.

[Cthulhu 2020]

Art is very important and it helps society in making progress but it's one of the least reliable ways of paying back student loans so if people don't have any money then they should pursue it in their free time or at a community college. It's just annoying when so many people get degrees in the humanities and arts and then they complain that scientists and innovaters are not addressing problems like climate change fast enough. People should focus on the biggest problems and personally I'd say a lack of art is not a problem because there is already so much good art out there that there's not enough time in the day to experience it all.

Art degrees without a plan don't bring in much money. Art degrees with an idea of precisely what you want to do does just fine.

But that can be said about ANY major. STEM fields included.

[cubby]

Art degrees without a plan don't bring in much money. Art degrees with an idea of precisely what you want to do does just fine.

But that can be said about ANY major. STEM fields included.

But the point is that we WANT art majors. We want undirected art just as much as we want directed art. And as has been pointed out thoroughly, most people don't know what they want to be when they are in college.

Just for conversation sake, I would argue that it's more important to be focused in a STEM major. If that makes any sense.

[Rasulis]

Art degrees without a plan don't bring in much money. Art degrees with an idea of precisely what you want to do does just fine.

But that can be said about ANY major. STEM fields included.

You are expecting a lot from 17 - 18 years old kids.

Personally, I think that the major is a lot less of a factor than the school. A visual art degree from Harvard is worth a lot more than an IT degree from a no-name university. An Master of Liberal Arts (MLA) degree from Stanford is worth more than an MBA degree from Grand Canyon University. The faculties at UC Berkeley College of Letters and Science, for example, include 23 Nobel laureates, 8 Pulitzer Prize winners, and 17 MacArthur Fellows. It provides a much better learning environment than your run of the mills stem universities.