If true, I call BS - it’s an affront to every rules playing citizen. I get it people are burdened by the debt but they made the choice. For everyone who is paying out of pocket, a total insult…just my opinion. I hope the article (widely published) is false.
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is this for federal student loans - for students?
or for families with parent plus loans? i can’t quite tell.
I would also prefer zero forgiveness of debt but in my opinion, this is not a terrible compromise. I would like to see them do something with interest rates on student loans going forward. Even better, get the government out of student loans all together. Perhaps that would force lenders to be more strict on lending huge amounts with little chance of repayment?
If student loans are essentially not subject to being discharged in bankruptcy and are effectively guaranteed to be repaid, why would the interest rate not be closer to a mortgage or secured loan?
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This will also raise college tuitions for people that pay out of pocket, because there will be more borrowing going forward, and colleges will raise tuition to mop up the extra cash available. Sad.
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Makes me want to get a loan for next year!!!
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You may not qualify for the means testing 
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Does anyone know where we can read the details for this?
This is just a publicity stunt. IIRC the IRS is not legally allowed to share taxpayer financial information (and that assumes the borrowers are filing federal tax returns or even owe federal income tax) with the Department of Education (except in specific situations) so how will the verification process work? Also the amount of time it will take to actually verify whether these borrowers qualify means that effectuating this debt forgiveness will take a very long time. And if they do income verification via self verification/self-certification the whole thing will be rife with fraud. Not to mention a very large segment of the population is going to be incredibly angry about this policy.
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Well, this would be the expected political outcome.
Those who want people to be responsible for their decision will hate the increase in the $28T federal debt.
Those who want student debt forgiveness will point to the person with $200,000 in debt in a low paying professions and scream that it’s nowhere near enough.
So pretty much as expected and the ongoing conversation won’t change.
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So does this mean I should start hunting for a lender to loan D22 $10k, a different lender each of her four years, so she can immediately have it all forgiven when she graduates? Even with a CS degree from a T20 school, it will take at least a few years to reach $150k.
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I’m confident that a federal law requiring verification of income data can include an exception to a federal law that might restrict it. Unless I’m missing some circumstance where the federal government can not change a law.
Though, fwiw, The IRS’s Federal Intergovernmental Program, part of the Federal Information Sharing program, doesn’t seem to indicate there is no information sharing.
You’re assuming this debt forgiveness will be a law? If it’s by executive order which is what I’m anticipating the law will remain as is.
My oldest D recently paid of her last $10K, just decided she wanted to be debt free before taking a lower paying job for a better quality of life. I believe it was the responsible thing to do, but it makes you wonder if she should have waited a little longer.
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Also
In September 2014 Tax Analysts sent a Freedom of Information Act request to the IRS for a list of all states and localities currently participating in IRS taxpayer information sharing programs, and all taxpayer information sharing agreements entered into between any state or territory of the United States and the IRS. It took nearly a year, but on July 20 Tax Analysts received over 1,200 pages of responsive documents, including the requested list and 88 information sharing agreements.
… usually made within the limitations imposed by their parents’ circumstances and choices …
Reasons for taking undergraduate student loans vary, and not always fully the choice of the student. For example:
- Student from poor family who could not afford any college without some student loans.
- Student who chose a more expensive college with student loans over an academically suitable less expensive college without student loans.
- Student who was forced by parents to take student loans to have “skin in the game” regardless of the cost of college, even though parents could comfortably pay the price.
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I am a rules following citizen. I am not affronted by this. I don’t mind it at all and am happy for everybody that will benefit from it.
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Surely banks are in a better position than 18 year olds to make informed and responsible financial decisions and live with the consequences of their actions, yet we spent around half trillion dollars (at least) to bail them out 2008.
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People who pay out-of-pocket for college are also making a choice. Nobody’s forcing them to send their children to residential college.
If the rules say people are eligible for $10k loan forgiveness then accepting it is playing by the rules. I’m happy for anyone the program is able to help. I know financing college is difficult and I hope this program will allow some people to finish their education. We could certainly do with a more educated populace.
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You’re referring to the “bailout” required due to the financial crisis caused by loans made to people who weren’t creditworthy but “deserved” a mortgage loan anyway (under the public policy pushed by the government that everyone should own a home) and then defaulted? Deja vu….Sounds a lot like these student loan borrowers.
The banks paid back their “bailout” with interest. The government made money.
Student loan forgiveness is in no way remotely equivalent. It’s another give away to people who somehow believe they shouldn’t have to repay a loan they took out because………the government has decided they don’t need to.
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Yes a choice not to burden other people with funding their kids’ loan bailout.
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