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Democrats Education United States Politics

Bernie Sanders Proposes Forgiving the Student Debt of 45 Million Americans (cnbc.com) 1514

Sen. Bernie Sanders announced a plan on Monday to erase the country's $1.6 trillion outstanding student loan tab, intensifying the higher education policy debate in the 2020 Democratic presidential primary. From a report: The Democratic presidential candidate's legislation -- dubbed "The College for All Act" -- will release all 45 million Americans from their student debt and be paid for with a new tax on Wall Street transactions. The proposal goes further than fellow Democratic candidate Elizabeth Warren's plan, which caps student debt forgiveness at $50,000 and offers no relief to borrowers who earn more than $250,000. Outstanding education debt in the U.S. has eclipsed credit card and auto debt. Today the average college graduate leaves school $30,000 in the red, up from $10,000 in the 1990s, and 28% of student loan borrowers are in delinquency or default. Sanders' plan would make two- and four-year public colleges and universities tuition- and debt-free. Trade schools and apprenticeship programs would be tuition-free, as well.
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Bernie Sanders Proposes Forgiving the Student Debt of 45 Million Americans

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  • Nope (Score:4, Insightful)

    by Joce640k ( 829181 ) on Monday June 24, 2019 @12:02PM (#58814414) Homepage

    All those idiots who racked up a $50,000 debt so they could pursue a career in media studies? Why should they get a free ride?

    • Re:Nope (Score:5, Interesting)

      by Anonymous Coward on Monday June 24, 2019 @12:10PM (#58814510)

      I can appreciate the problems that these kids are facing, but how about instead of eliminating the debt, how about capping interest. I'd honestly be fine if it were 0% but would prefer it to be tied to inflation. But no matter what, they should at the minimum have to repay the principal.

      • Re:Nope (Score:5, Interesting)

        by Joce640k ( 829181 ) on Monday June 24, 2019 @12:30PM (#58814734) Homepage

        Yep. Zero interest is OK by me.

        We could maybe even reward those who are managing to make the debt go down all by themselves (every dollar you pay off, the government pays one off too).

      • I disagree (Score:4, Interesting)

        by rsilvergun ( 571051 ) on Monday June 24, 2019 @02:43PM (#58815988)
        they never should have had to pay for higher education in the first place. They got those degrees by and large because society wants workers. We want doctors, nurses, engineers, lawyers, etc. They're not just making money for themselves, they make money for all of us. That's how civilization (and your 401k) works.

        Is it worth it? Well, you get your money's worth every time you drive across a bridge that doesn't collapse, post anything to the Internet or go to the doctor.
        • Re:I disagree (Score:4, Insightful)

          by ChrisMaple ( 607946 ) on Monday June 24, 2019 @07:13PM (#58817730)

          "society wants workers." Society is not a living being, it does not have wants. It sure as hell does not have the right to steal from me to pay for the slackers at a party school.

          Most of the learning that comes about in higher education does not need a school. It's a scam, and having taxes pay for college is a double scam.

    • Re:Nope (Score:5, Informative)

      by atrex ( 4811433 ) on Monday June 24, 2019 @12:12PM (#58814534)
      Even without knowing when you went to college, I bet it's hard to equate when you went to school and paid for your tuition vs the kind of prices students have to put up with these days.
      https://www.marketwatch.com/gr... [marketwatch.com]
      Fun fact: In the past universities were heavily subsidized by the tax payers, much more so than today. So, claiming you "worked hard and put yourself through college all on your own" really isn't that true of a statement, you just weren't aware of federal dollars that were subsidizing your education.
      • Re:Nope (Score:5, Insightful)

        by Mashiki ( 184564 ) <mashiki@[ ]il.com ['gma' in gap]> on Monday June 24, 2019 @12:25PM (#58814666) Homepage

        Fun fact: Maybe the Obama administration shouldn't have nationalized student loans, causing the massive spike in tuition costs.

        Whenever something becomes nationalized, the feeding frenzy begins until clamps are put into place. That's exactly what happened. Look at any university in the US and see the explosion of useless degrees and "reconstruction" projects on buildings that didn't require it.

        • Re:Nope (Score:5, Informative)

          by Anonymous Coward on Monday June 24, 2019 @12:45PM (#58814894)

          Fun fact: Maybe the Obama administration shouldn't have nationalized student loans, causing the massive spike in tuition costs.

          That's wasn't the cause though

          Betsy DeVos Is Wrong About The 'Government Takeover' Of Student Loans [forbes.com]

          • by MobyDisk ( 75490 )

            Just to clarify: The massive increase in student loans is a big part of the problem and the linked article doesn't say otherwise. The article merely states that it was not solely Obama's specific changes that caused it.

          • Re:Nope (Score:5, Informative)

            by Mashiki ( 184564 ) <mashiki@[ ]il.com ['gma' in gap]> on Tuesday June 25, 2019 @08:31AM (#58820480) Homepage

            That's wasn't the cause though

            That was the cause though. The US government holds 99.1% of all student loan debt today, it's held roughly that same amount since 2008 when the Obama administration took over student loans. The only .9% that isn't held by the government are held by two banks who were still operating student loan programs into mid-2008 or so because those people had gotten loans prior to the take over and opted NOT to transfer their loan to the federal government. I realize that's hard to understand and all, but even Maxine Walters got the surprise of her life when she was grilling all those banking execs a few months back asking them "what they were doing about the student loan debt" and was bluntly told that "we haven't offered them in a decade or more."

        • by rsilvergun ( 571051 ) on Monday June 24, 2019 @01:30PM (#58815340)
          It was mostly Federal Funding Cuts [fivethirtyeight.com].

          As for your assertion that nationalizing doesn't work, our entire transportation network would beg to differ. Privatization [youtube.com] of universal services doesn't seem to work so well though. [wikipedia.org]
        • Re:Nope (Score:5, Informative)

          by godrik ( 1287354 ) on Monday June 24, 2019 @01:52PM (#58815562)

          (Disclaimer: I am tenured at a public state university/)

          Fun fact: Maybe the Obama administration shouldn't have nationalized student loans, causing the massive spike in tuition costs.

          Actually that's not why tuition cost are rising. The cost of tuition has been rising sharply since before Obama was elected. The main driver of tuition cost is that state governments have been pulling back their financial support to universities.

          Look at any university in the US and see the explosion of useless degrees and "reconstruction" projects on buildings that didn't require it.

          Actually the number of students enrolled in art and humanities degree (which I guess are the ones you call useless) are not rising. The number of degrees may have increased, but the fraction of student has not. Students are mostly going to STEM majors or business majors.

          While universities are usually not for profit, business logic still applies to them. These reconstruction projects are typically motivated by business logic. Since universities are in competition with one an other, they need to attract students to survive. And it turns out that students (and parents) don't really make decisions based on academics because there is only so many classrooms and libraries you can show them. They make decisions on other criteria such as how nice the building look, how many gyms there are. This actually drives donation money. So mostly these (re) construction are bringing new revenue that help pay for TA support or teaching faculty.

          I agree with you that I would rather see less money go to "cosmetic" aspects and more money do to "academics", but in a competitive university market where students chose where they go, and their tuition dollar is a primary source of revenue for the university, this will not change.

          This was mostly a Republican idea that having universities compete would lead to higher quality education. In practice the quality of education has dropped because legislatures have been tracking bad metrics to allocate funds such as how many student do you enroll, and how many do you graduate. So universities have responded by deploy marketing efforts to get more enrollment, and retention departments that make sure student graduate without even considering if the university actually educate them well.

          • Re:Nope (Score:5, Informative)

            by ravenscar ( 1662985 ) on Monday June 24, 2019 @06:35PM (#58817546)

            I completely agree with you. My anecdotal experience (having helped multiple kids with their college considerations) is that their expectation was to go attend an all-inclusive resort for four years. They were all about the quality of the dorms, the number of high-end workout facilities, the food, and access to recreational activities. Every college tour I attended stressed these amenities and many had zero time talking about academic activities. Not one was focused on getting kids to witness actual classroom activities, research, or academic discussions. My thoughts: "I'm not paying for a four year trip to "Sandals." No worries from the kids' end though, because "It's really easy to get loans to pay for the cost difference." Alas, paying off these loans was so far off for these kids that they saw them essentially as free money.

            It reminds me quite a bit of what happened the last time loans had the appearance of free money to folk...right before the housing crash. You know, back when anyone could get a loan, pay interest only for 5 years and then sell their home for at least $200k in profit (just before the real interest rates kicked in or the balloon payment came due) so they could move on to a bigger and better house that they couldn't really afford. Back when developers were going more and more extravagant because they couldn't sell a house to a young family of three unless it had granite counters, a three car garage, 3000+ square feet of living space, and all the other luxuries. It worked so well until it didn't.

            Of course, the big difference is that the people who couldn't afford the home loans just short sold their homes or walked away from them. Student loans are much tougher since they aren't just wiped away...ever. Both situations led to excess, however, and will be costing this country countless amounts for many years to come.

            It's time to really work on making college education affordable again, but it won't happen if 17yo kids are effectively deciding where the money is spent (I was no better at 17). As you said, that probably comes from restoring public funding (with rigorous controls) rather than setting schools up to compete on who has the coolest bowling alley/arcade/bar in the student union buildings.

      • Re:Nope (Score:5, Insightful)

        by chispito ( 1870390 ) on Monday June 24, 2019 @12:28PM (#58814698)

        Even without knowing when you went to college, I bet it's hard to equate when you went to school and paid for your tuition vs the kind of prices students have to put up with these days.

        The GP's point was that you do not "have to" get a degree in a field with few job prospects capable of paying off the debt of such a high tuition.

      • Re:Nope (Score:5, Interesting)

        by pgmrdlm ( 1642279 ) on Monday June 24, 2019 @12:31PM (#58814752) Journal
        Giving to Americaâ(TM)s colleges rose 6 percent in 2017, lifted by a surge in giving by alumni, according to data released Tuesday. In total, higher-education institutions raised $43.6 billion, the largest amount ever counted by the annual survey since it began in 1957. As in 2016, Harvard University topped the list, with $1.28 billion raised. Harvard is now in the final months of a capital campaign that has raised more than $8 billion far more than its goal of $6 billion.

        https://www.philanthropy.com/article/Donations-to-Colleges-Up-6-in/242441 [philanthropy.com]

        With that type of money donated to colleges privately along with government subsidies, grants, and research money. Not forgetting what they make off their athletic departments. The fucking colleges can afford to not charge the amounts they are. This is the colleges fault, not the governments. Shit, not even blaming this on the students. Colleges themselves are causing this debt problem. Nobody else
      • Re:Nope (Score:5, Insightful)

        by dbrueck ( 1872018 ) on Monday June 24, 2019 @12:36PM (#58814808)

        The value proposition of many colleges/universities is out of whack, and so that skews the numbers. But if you are willing to approach it objectively, it's still very doable if you can avoid the allure of an "elite" college (whatever that really means in practical terms).

        I worked a part-time job all through high school and made sure I got good grades, so between cash on hand and a few not-huge scholarships, I was in a good starting spot even though my parents couldn't afford to help me at all. I chose a good-but-not-elite college, worked part time during school and full-time (and over-time) in the summer, and finished school with no debt.

        That was in the 90's, so a little later than the website you linked to. But I have two kids who followed pretty much the same recipe and are so far putting themselves through college without any debt and no major help from me (I've occasionally taken them grocery shopping to get a semester started - a few things like that). And I know many, many people who either did the same or who ended school with minor (under $10k) student debt that they paid off relatively quickly.

      • Re:Nope (Score:4, Informative)

        by AndyTheCoderMan ( 1557467 ) on Monday June 24, 2019 @12:45PM (#58814902)
        You know why tuition has gotten out of control? Its because the government is providing cheap money to students via these loan programs. With more students demand goes up so the prices go up. Now that students don't have to pay anything what do you think is going to happen to tuition costs?
        • by rsilvergun ( 571051 ) on Tuesday June 25, 2019 @01:39PM (#58822522)
          See here [fivethirtyeight.com]. Most of the cost is due to cuts to state and federal funding. It's got nothing to do with cheap money. Yes, a few for profit colleges have taken advantage of it. They were quickly brought under control by rules that require them to meet minimum job placement numbers to qualify for the loans. Trump reversed those rules though, but they are still a tiny fraction of students compared to the public Universities and community colleges.
      • Re:Nope (Score:5, Insightful)

        by nehumanuscrede ( 624750 ) on Monday June 24, 2019 @02:07PM (#58815708)

        When I went to school, the bank would have laughed in my face were I to ask for a loan of ANY amount with no job, no credit history and no collateral.

        The ONLY reason these kids are getting these loans is because they're not dis-chargeable via bankruptcy. If they could be eliminated via the bankruptcy route, the banks wouldn't issue the loans and one of two things would happen:

        1) Only the rich could afford to go to college
        2) Universities would be forced to lower their prices to that which can be afforded by the masses.

    • All those banks who received BILLIONS of taxpayer money.
      FTFY.

    • by rsilvergun ( 571051 ) on Monday June 24, 2019 @12:18PM (#58814592)
      all the MBAs, Teachers, Nurses, Doctors, Lawyers, programmers and engineers, which are the majority of graduates.

      There really aren't all that many people getting useless degrees. Even fewer if you take out for profit schools that prey on the vulnerable.
      • Re: (Score:3, Insightful)

        by Anonymous Coward

        Those people are paying off their debt just fine. Most of them likely pay it off quick. A student debt cancellation would disproportionately help shit degrees.

      • by alvinrod ( 889928 ) on Monday June 24, 2019 @01:07PM (#58815110)
        The useless degrees may not be large in any one category, but they add up. Here's the statistics by year across several decades: https://nces.ed.gov/programs/digest/d17/tables/dt17_322.10.asp?current=yes [ed.gov]

        Tell me with a straight face we needed 371,694 business majors, 92,554 comm/journalism majors, 42,795 English majors, 18,427 foreign language/literature majors, 43,661 liberal arts majors, 10,157 philosphy/religious studies majors, 117,440 psychology majors, 161,230 social sociences/history majors, or 92,979 visual/performing arts majors.

        Yes those are broad categories and yes we do have jobs that benefit from or even require degrees in those categories (e.g., there were 85 library science degrees awarded in that period, which sounds a lot closer to the mark). However, we don't need anywhere near that many people with those particular degrees. But if you add all of those categories up together you get about 950,000 degrees, which accounts for almost half of all degrees awarded in the 2015-2016 period.

        And yes, I've clearly left off the STEM degrees, but even if as a category that's in demand, there are plenty of disciplines within that broad area that still award degrees in excess of jobs available. The degree isn't necessarily useless in and of itself (though there are some guilty of that) but it's the simple fact that the degree is useless to the person who obtained it because it will not help them advance their career and it will only leave them saddled with debt that they cannot discharge.

        And this is just degrees awarded. This doesn't count the large population that goes to college for a few years before ultimately dropping out. They just get shackled with the debt without the benefit of the useless degree.
    • I know more unemployed/underemployed engineers than I do media studies majors.

      Everyone should get a "Free Ride".

    • All those idiots who racked up a $50,000 debt so they could pursue a career in media studies? Why should they get a free ride?

      So what if they did pursue such a degree? Most jobs don't really give a shit what the degree is in - just that you have a degree of some description and that it provides some evidence that you have a functioning brain. Most people I know have jobs that are not particularly relevant to their degree. My sister has a degree in civil engineering and has never worked a day as an engineer of any description. But she's educated and can prove it and THAT is what matters in quite a lot of cases. One of my closes

  • by religionofpeas ( 4511805 ) on Monday June 24, 2019 @12:04PM (#58814450)

    Paying rich universities with money taken from tax payers.

    • by rsilvergun ( 571051 ) on Monday June 24, 2019 @12:23PM (#58814636)
      and the for profit ones can easily be shut down with strict job placement requirements and well funded community colleges to pick up the slack for the trades.

      For anyone wondering if Public Universities are a racket this is easily disproved if you've got kids in college. There were 400 qualified kids (GPA 3.8+) applying to my kid's nursing program and 200 slots. They did interviews, looked at extra curricular activities and special programs, etc, etc to decide who got a slot.

      What they did not do is jack up the price until they had only 200 applications. Which is what you do in a for profit business when demand exceeds supply. If they were just soaking up loan money that's exactly what they'd do.

      Now, the private, for profit Universities are another matter entirely. But those only exist because our corrupt, pro-corporate government is letting them. Obama had passed rules requiring high levels of job placement, but Trump cancelled those rules and they roared right back to life.
  • by lgw ( 121541 ) on Monday June 24, 2019 @12:06PM (#58814456) Journal

    Seems like the Democrat primaries are going to devolve into a game show. Who can give away the most in cash and prizes? Reparations for Slavery! Reparations for women being undercompensated all these generations! College loan forgiveness! Reparations for homosexuals! (Yes, these are all real proposals, and the silly season is just beginning.)

    I don't think this plays as well to mainstream America as the candidates seem to think. Yes, the Free Shit Army will always have volunteers, but most people actually want to earn their way through life, they just don't want to have to struggle to find a decent job.

    • by phantomfive ( 622387 ) on Monday June 24, 2019 @12:29PM (#58814720) Journal

      I don't think this plays as well to mainstream America as the candidates seem to think

      They don't need to play well to mainstream America, they need to play well to the DNC voters. After they win the nomination, they can pivot towards the center.

      • by SuperKendall ( 25149 ) on Monday June 24, 2019 @01:15PM (#58815190)

        After they win the nomination, they can pivot towards the center.

        Pivoting used to be possible because the media wouldn't cover outrageous claims made in the primaries.

        Now pivots are essentially impossible, because after the primaries everyone has tons of video material of you saying whatever.

        After the primaries you can only go harder in the direction you were on before, or you look absurd and weak. That is partly why Trump won, he didn't pivot - he just went More Turmp.

        Whoever wins the DNC nomination (Warren) will have to go Hard Left, Full Speed.

    • by Tablizer ( 95088 ) on Monday June 24, 2019 @12:49PM (#58814946) Journal

      Socialism: a lie told by totalitarians and believed by fools.

      Socialism is an economic system, and totalitarianism is a political system. Apples and oranges. Decades ago they tended to happen together, but various countries have separated them so that you have places like Singapore which are totalitarianistic capitalists, and places like Sweden which is (mostly) a socialist democracy.

      Upgrade your slogans.

      • by lgw ( 121541 )

        "Totalitarianism" is rather unpopular. So you call it "Communism" instead. But that lie stopped working. So now you call it "Socialism" instead. It doesn't matter what it's called, government control of the economy is how you get totalitarianism. "Just vote for us to tax the rich, and tax corporations, and nationalize some key industries, and fix bad pricing, and fix bad wages it's all to benefit you!" A lie. Told by totalitarians. And believed by fools.

  • Well. (Score:5, Insightful)

    by b0s0z0ku ( 752509 ) on Monday June 24, 2019 @12:08PM (#58814490)

    We squandered $7 trillion on homicide sprees in Iraq and Afghanistan between 9/11/2001 and present day. Why not invest a mere 25% of that number in actual Americans?

    Though this is really a Band-Aid solution. The US needs a robust and cheap state university system nationwide, and public schools need to stop being stigmatized vs private universities. That's part of the joy of living in states like NY, NJ, MD, CA, MI, etc -- they have functional public university systems that offer opportunity to all without major debt accumulation.

  • by rjejr ( 921275 ) on Monday June 24, 2019 @12:13PM (#58814546)
    Was hoping /. might get a good discussion going on the topic of expensive college tuition and student debt but I guess that was too much to ask for. Guess I'll continue my search for some type of balanced coverage of the topic. I miss the days of middle ground and conversation, now all we have are extreme decisions and extremely defensive people. smh Anybody know of a good website that covers the issue of student loan debt?
    • Re: (Score:3, Interesting)

      by phantomfive ( 622387 )

      Was hoping /. might get a good discussion going on the topic of expensive college tuition and student debt but I guess that was too much to ask for.

      What kind of discussion are you looking for here? The pros and cons of nationalizing the university system? An in-depth discussion of the reasons for the increase in tuition costs? [wikipedia.org]

      An answer to the question of whether this promise will actually get votes for Bernie, whether he succeeds in implementing it or not?

  • by sbrown123 ( 229895 ) on Monday June 24, 2019 @12:14PM (#58814568) Homepage

    There should be some law against giving potential voters something financial in return for votes in their favor. It reeks of bribery.

  • And then what? (Score:5, Insightful)

    by SuperKendall ( 25149 ) on Monday June 24, 2019 @12:15PM (#58814574)

    Ok, you forgive debts that total trillions of dollars...

    Then what?

    I mean, are you just saying everyone who goes to college going forward will have debts forgiven after?

    Well then, I guess college can cost a million dollars a year - who cares, since you don't have to pay it?

    Well the thing is someone does have to pay it. Someone has to give the colleges very real money and forgiveness means the taxpayers give all of the kids free money to party with.

    A more realistic plan is to say there can be some level of debt forgiveness for people with outstanding student debt who need help. But in exchange we end federal taxpayer support for student loans, and colleges have to readjust tuition to be what people can realistically afford, not to make use of what the government is willing to hand out.

    It would be very interesting to see what support would be like for such a system where a ton of students with crushing debt would benefit, at the expense of a transition period with people about to enter school not getting as easy access to student loans.

  • by NaCh0 ( 6124 ) on Monday June 24, 2019 @12:18PM (#58814594) Homepage

    Schools need to be on the hook, at least partially, for the success of their students. One of the reasons school has become so expensive is the "free" money from the federal government. If schools were responsible for 20-30% payback of defaulted loans from their endowments, we'd see a vastly different landscape. Both in the seriousness in the way they treat students and the in the quality of the education.

    Students also need to have some kind of consequence for defaulting. Rescinding the diploma to any "forgiven" loan is one step. It doesn't address students who took loans and didn't finish but it would be something serious enough for people to consider before taking the forgiveness instead of paying back the money owed.

  • by bradley13 ( 1118935 ) on Monday June 24, 2019 @12:25PM (#58814660) Homepage

    Remember the amnesty for illegal immigrants, back in the (iirc) 80's? Many of us said "fine, but first secure the borders, because otherwise this is a huge incentive for more of the same". And here we are.

    Federal involvement in personal loans was a stupid idea. Want to get out of this mess? Forgive all those loans? Fine, but first, end all federal loan involvement.

    Otherwise this would just be a huge incentive for even dumber loans, because people would count on the being forgiven.

    • Re: (Score:3, Insightful)

      by Tablizer ( 95088 )

      Remember the amnesty for illegal immigrants, back in the (iirc) 80's? Many of us said "fine, but first secure the borders, because otherwise this is a huge incentive for more of the same". And here we are.

      It takes a multi-disciplined approach to reduce illegal immigration. Focusing on just the border is a mistake. We should also be auditing business hiring and payroll practices because most illegals come here to work. However, businesses legally bribe Congress to keep that from happening because cheap labor

  • Good. (Score:5, Insightful)

    by rsilvergun ( 571051 ) on Monday June 24, 2019 @12:29PM (#58814728)
    My Kid's gonna graduate without much debt (about $20k + $10k I'm taking on) but I still want this. The entire economy is being held hostage by this debt. Millennials are spending less [bbc.com]. This can't go on [duckduckgo.com]

    Like having a 401k? Like Social Security? Like Medicare when you're 65 and nobody'll insure you?

    Then we need to get money into the hands of consumers so they can spend it. Right now it's just interest going to the top. Money in consumers hands fuels the engine of the economy and the engine is starved. You over 40s with your "I got mine" attitudes are gonna lose it. Your retirement savings will be eaten alive by rising medical, housing and food costs. Governments will turn to you to fill their coffers because the young'uns don't have anything. They'll find ways to cut your benefits and tax you.

    No man is an island. We've forgotten that.
  • by roc97007 ( 608802 ) on Monday June 24, 2019 @12:46PM (#58814912) Journal

    Is this retroactive? Why isn't he offering to reimburse me for my student tuition? Am I being penalized because I skimped and saved and paid mine off?

    • Re: (Score:3, Insightful)

      by colonslash ( 544210 )

      No, you're not being penalized. Just because someone else gets something doesn't mean you're losing something. This would be paid for by Wall Street taxes.

  • by Solandri ( 704621 ) on Monday June 24, 2019 @12:50PM (#58814962)
    What about those who were responsible and paid back their student loans? What about those who were appalled at the price of tuition and figured out a way to get a college degree without taking on enormous student loans? Are we gonna pay them their fair share too?

    I was already screwed over by the housing crisis bailout. I saved a 30% down payment, bought within my means, made sure what I bought wasn't horribly overpriced, and made all my mortgage payments on time. Consequently I didn't qualify for any of the relief programs. But I still had to pay for them with my taxes. Now you want to screw me over for being responsible about how I paid for college too? Because forgiveness of debt doesn't mean nobody has to repay the debt. It means someone else has to repay the debt - in this case, all the taxpayers.
    • by atrex ( 4811433 ) on Monday June 24, 2019 @01:18PM (#58815230)
      Congratulations you were smarter/better prepared/had richer parents at 18 than many other people were, have a nice pat on the back?

      Seriously though, should a bunch of people that were 18 years old at the time spend the rest of their lives in indentured servitude because of aggressive college recruiters and loan programs that suckered them so deeply into debt that they can never hope to dig their way out? Especially when the bright future salaries they were promised have no chance of materializing?

      Do you know how many of them just up and commit suicide as the crushing debt they're under makes it impossible for them to build a future? That's debt that'll never be recovered.
      • by silentbozo ( 542534 ) on Monday June 24, 2019 @01:59PM (#58815644) Journal

        Let's say we forgive all the debt.

        Now they can take all the money they were paying toward their student loans and... save it? Spend it? Buy a house and start making loan payments again that they can't afford because real estate prices where the jobs are have gotten insane?

        The problem isn't the debt. It's the jobs (both where they are and what they pay). Forgiving the one type of debt is a one time mulligan, but it opens the doors to the next group of salespeople to exploit them.

        Face it, it's a bailout... but it's not a bailout of student debtors. It's a bailout of all the real estate agents and financial management companies who have been bitching that the student loan companies got there first.

        In the end, the people who are getting the short end of the stick will still get screwed, because they'll still be last in line for all the things they couldn't afford after their current debt payments get cancelled out.

        It's the same thing that happened when people families started going two income. The first ones that did it had a huge advantage over everybody else. Once everybody did it, there was no advantage and in fact... you had to go two income to afford what used to be affordable on one income alone.

        You'll know that this was all a scam by the financial services industry when they bribe congress to make mortgages (like student loans) no longer dischargeable in bankruptcy...

  • So... (Score:4, Insightful)

    by stikves ( 127823 ) on Monday June 24, 2019 @12:55PM (#58815012) Homepage

    If you are responsible, and paid off your debts, or even did not take too much to pay for a lavish party life, you don't get any benefits. In fact the money you invest in US companies will now be taxed to pay off the debt of your slacker friends...

    Nice way to bring moral hazard into the equation. Previously for-profit colleges and predatory loan officers had known that these loans would not be discharged by bankruptcy, i.e.: paid even when they were bad. Now the government is letting the students know they would not be on the hook for the loan anyways.

    Why not fix the root cause, and now pay extravagant fees for not-so-useful education. Everyone has the right to study whatever they want. However if they want to take on a $100k loan for an "education" with zero job prospects, let them do it on their own dime, now the public's.

  • by LynnwoodRooster ( 966895 ) on Monday June 24, 2019 @01:51PM (#58815552) Journal
    What about those who've paid off their student loans? Will Bernie support reparations for anyone who's paid student loans in the past, or is this just for the newest group?
  • Interesting idea (Score:5, Interesting)

    by ErichTheRed ( 39327 ) on Monday June 24, 2019 @02:29PM (#58815888)

    Seeing the reaction to this brings to mind what we'd probably see if anyone ever proposed just cutting the whole work-earn-consume-repeat cycle off and implementing a basic income as of I'm about midway through my working career and have been lucky enough to be able to put some money away for retirement. I would imagine most of my peers in this situation would be wary of having their retirement money "stolen" or "made worthless." -- there's a huge perceived sunk cost and people don't want to give up what they have. Same goes for loan forgiveness...someone who's paid on their loans for years is going to be upset that they "wasted" all those payments now that student debt is forgiven.

    However, we have never faced anything like we have now. It was always the case that more education guaranteed you a better job which allowed you to consume more and have a better life. Recently, this correlation is not absolute. People going into school and investing tons of money aren't just the sterotypical people paying $300K+ for a law degree they can't get a BigLaw associate position with, or a completely impractical course of study with no market outside academia...due to companies offshoring and outsourcing entry level jobs, and academic institutions cutting back faculty positions, there's less of a market for ALL educated individuals. STEM people are having the same problems liberal arts people are...there's no work that will allow them to pay back their loans and the loans are an anchor preventing them from doing anything previous generations did (moving away from home, buying a house, having kids, etc.)

    Now, it's possible that most knowledge work as we know it will be replaced in a few decades, and everyone, educated or not, will be unable to sell their labor on the labor market or have trouble doing so for a rate that provides a good return on investment. The only thing that will potentially help you is, surprisingly, more education. A bachelors' degree is going to be the new high school diploma, which means that we need to ensure that everyone can get to at least that level without being indentured to your loan servicer forever.

    I'd be for this simply because it would be a much bigger economic stimulus than just giving wealthy people another tax cut. You would directly place those loan payments students were making into their pockets again and they could save or spend it immediately. Giving it to the wealthy as a giveaway is just going to make them hoard it offshore somewhere...the luxury home and yacht markets aren't that busy, but injecting that money back into the community would improve the most lives.

  • Better alternative (Score:5, Interesting)

    by superdave80 ( 1226592 ) on Monday June 24, 2019 @03:11PM (#58816224)

    1. Buy out the debt and then have the outstanding loans converted to 0%, and the government can start collecting. Those who can show a real hardship can ask to extend the payments out longer. Since it is 0%, the extension won't cause extra hardship. Failure to pay after this point will trigger a witholding from paychecks/taxes/whatever the government feels like doing.

    2. All future student debt will be treated the same as any unsecured debt. Let bankruptcy courts sort out who can or can't pay, and on what terms. Banks will now have to take a long hard look at who to loan to, just like they do any OTHER loan. Duh.

  • Not gonna happen (Score:4, Insightful)

    by nehumanuscrede ( 624750 ) on Monday June 24, 2019 @03:23PM (#58816326)

    Anyone with any snap at all knows this is just Bernie trying to win over the young and inexperienced crowd vote.

    The reason this won't happen is because the VAST majority of voting Americans worked their asses off to pay their debts. Maybe they joined the military because they knew they couldn't afford college on their own. Maybe they did without things they really wanted because they understand how debt works. They've spent a lifetime saving and setting money aside for a shot at retirement.

    Politicians ( with something to lose, like their cushy job ) won't touch this with a 100ft pole because they know the backlash from the above group would be the size of a Tidal Wave and it would get them voted from office in a hurry.

    The same is true for all the promises the candidates are making. Slavery Reparations, Debt Forgiveness, Illegal Immigrant Amnesty, Gun Control, etc. etc.

    Empty promises fueled by modern day issues all designed for the sole purpose of gaining your vote.

  • by acoustix ( 123925 ) on Tuesday June 25, 2019 @08:45AM (#58820590)

    Sadly, some will fall for it. #2020Bribery

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