Biden Says He Is “Unlikely” To Cancel $50,000 In Student Loan Debt By Executive Order

I know several students who began their college careers at local community colleges for financial reasons, then transferred to a public university for their last 2 years to get the degree. Community colleges usually charge very little, and can be helpful for many. It is unlikely those students accumulated much debt.

Substantial debt related to residential colleges or graduate degrees is a choice, like a fancy car. I understand many want one, but transportation can be obtained with an old Honda too. I am not funding the difference.

7 Likes

The degrees named above, that may require a master’s degree now, can all be started at a community college.

I agree that many students probably overextend themselves to have the experience they really want not the one they can afford.

My kids can’t afford the top schools in the country, semesters abroad or other opportunities that wealth may afford. Should they get those opportunities paid for by taxpayers? What education experiences are we really wanting to be eligible for forgiveness?

I’m not saying everyone makes extravagant choices but some do. My kids will have limits based on what is affordable. That’s just the way it is.

3 Likes

When there are complaints about taking $30k in loans to go to school, is $20k acceptable $10k? It’s a slippery slope …that’s why I asked what’s affordable? What is an acceptable level of debt? $30k is too much but $25k is acceptable, $22k is acceptable? No more than $5000? Heck just make it free…but now you have to limit who can attend because resources aren’t unlimited.

1 Like

Btw, my D1’s study abroad (via her college) did not charge extra, just the same semester costs. And they paid for flights, R&B, all school related side trips, and threw in some spending money. (Out of our usual costs, sure. But not an extra bite.)

So do take a look at how this works at various colleges. Some may not charge regular fees, but there’s a “placeholder fee,” (sometimes exhorbitant, other times, not.) And there’s a difference between a trip sponsored by your college vs an outside program.

1 Like

Thanks for that information. My oldest son is pursuing engineering so I’m not sure there’s a lot of room for a semester abroad but we will look into it. Thanks again.

Most of those with big debt took it for graduate or professional school.

Worst states for undergraduate debt are NH and PA at around $39k average; both states have some state universities with average undergraduate debt over $40k, but not over $50k. Undergraduate loans above the federal limits generally would be private loans (cosigned usually by parents).

1 Like

If you’re taking on big debt for graduate school shouldn’t you be able to get a job that pays for that debt. I mean someone with a master’s degree should be able to pay back $40,000 in ten years right. That’s just $2 an hour. I would hope the graduate degree would be worth an extra $2 an hour.

1 Like

You’d think so, but many people still pay lots of money to attend law schools that are neither top 14 nor well regarded in the state or region that they want to practice law in.

2 Likes

I’m not sure that’s a great financial decision then. It hardly seems like it should he a taxpayer problem at that point.

3 Likes

Law degree is an obvious one. Debt to got to a T14 or a state flagship is generally fine, but after that it’s very questionable.

1 Like

Something new found today. It wasn’t just stimulus package that was passed back in December,

There’s already a thread here: FAFSA Changes in covid-19 relief bill (starting 2023/24 year)

1 Like

In other words, discussion of FAFSA changed belongs there. OT posts deleted

2 Likes

Ironic that while we discuss cancellation of student loan debt in this thread, I’ve read so many other threads on CC where kids are trying to legitimate taking on debt to attend college. It might be worth launching a campaign aimed at educating high school kids and their parents about the repercussions of student loan debt.

3 Likes

Kind of disappointing that this article is bit light on actual facts or fact checking. It is a complicated issue but the writer just reiterates the usual talking points.

I thought the writer did a good job of pointing out financial aid misconceptions that are so prevailing a president is repeating them. People who’ve been on CC a long time may be aware of these basic facts, but many aren’t. I’m glad NPR is attempting to bring light to the subject.

3 Likes

I was disappointed in the President’s comments. They illustrate a lack of understanding, IMO. The vast majority of undergraduate students do not borrow $50,000 in federal loans. Of those that do, the ones I know (from working at an urban public university) were adult students struggling to better their lives through higher education. We are a society that expects people to have a degree in order to get a decent job but fails to provide an affordable path for people who aren’t well off to get a degree. If you forgive undergraduate debt only, there will not be a critical mass of $50,000 borrowers … although accumulated interest certainly has pushed up the balance for many who borrowed a lot less.

3 Likes

I have spoken on my own belief on this thread (no loan forgiveness of any type until something is done systematically to prevent this from happening again years down the line). But I have other philosophical issues that I hope you or someone on this thread can answer.

  1. What happens to the people who have struggled and sacrificed to pay down large amounts of student loan debt?

  2. If large amounts of student debt are discharged or forgiven, how much harder will it be for future students to borrow (This may make access to higher education even harder for low SES students long term because why even give student loans if they will one day be discharged)? I can not imagine how high the interest rate will be on future student loans.

  3. Why should tax payers pay down the loans of students who have chosen more expensive educational options versus possible lower cost options?

  4. Does anyone have a plan to slow down the rampant inflation in higher education or to make higher education more affordable to the masses?

10 Likes

That and healthcare costs are next ticking time bombs and will induce recession.

1 Like