Student Loan Forgiveness

[ClydeR]

What about this student loan forgiveness? Good or bad?

Biden has announced that some student borrowers will have $10,000 or $20,000 of debt forgiven. Currently, loan debt payment is deferred because of the pandemic, and the interest rate during the deferral period is set to 0%. The deferment began while Trump was still President. Biden says that in addition to forgiving debt, he is also ending the deferrals.

Is there really any economic difference between a deferral at 0% interest and forgiveness of a loan amount? Is the below equation true or false for a student with $100,000 of student loan debt and an interest rate of 5%?

Deferral for 2 years = Forgiveness of $10,000 debt

[Tgo01]

STFU.

But:

Deferral for 2 years = Forgiveness of $10,000 debt

Especially STFU.

[Gelston]

The court challenges on this should be interesting. Even Pelosi said, in the past, that he didn't have the authority to do this.

We'll see how it shakes.

[Parkbandit]

I'll be expecting 10K to be taken off my taxes for each kid I put through college.

Thanks.

[Gelston]

I'll be expecting 10K to be taken off my taxes for each kid I put through college.

Thanks.

Up to 20k if they used a pell grant.

[Parkbandit]

Also, this just in: Colleges across the country magically increase their prices, given the new "free" money!

[Parkbandit]

Up to 20k if they used a pell grant.

Sweet.. when can I expect that $40K check to show up here?

[Gelston]

Yeah, the root of the problem is the costs of college. It shouldn't cost 40 grand to get a Bachelor's degree.

I also still hold the belief that all Community Colleges should be free as an extension of High School.

[Tgo01]

The court challenges on this should be interesting.

I wonder who is going to challenge it though?

Even Pelosi is now cheering Biden's illegal move, so the Democrats won't battle for their right to control the purse strings.

It would fall on Republicans or private citizens, the former of which might not want to take away 10-20k from voters a few months before the elections, and not sure private citizens have standing to sue, although they should.

[Gelston]

I wonder who is going to challenge it though?

Even Pelosi is now cheering Biden's illegal move, so the Democrats won't battle for their right to control the purse strings.

It would fall on Republicans or private citizens, the former of which might not want to take away 10-20k from voters a few months before the elections, and not sure private citizens have standing to sue, although they should.

Well yeah, nearly half of the Government is Republicans so I don't see how that is a question.

There are already plenty of Republicans railing against it.