this post was submitted on 23 Aug 2023
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Federal student loan borrowers can expect “the most affordable student loan plan ever”, Biden said in a video address on Tuesday announcing significant changes to the debt from higher education held by over an eighth of the country.

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[–] [email protected] 32 points 1 year ago (2 children)

More affordable than total elimination?

[–] [email protected] 75 points 1 year ago (2 children)

"Most affordable ever" does not mean "most affordable possible." He tried that. SCOTUS stopped him. He's doing what he can to make the situation better.

[–] [email protected] 14 points 1 year ago (2 children)

Honestly I think this is better on the whole. Not if you were going to get your loans forgiven - I get that - but for today and tomorrow’s borrowers, this policy will be a positive thing and will still help current debt holders, too.

[–] [email protected] 8 points 1 year ago (2 children)

It can actually end up having the effect of causing tuition to go up.

When student loans became loans that couldn't get forgiven, and federal student loans became widely accessible for poor students, tuition prices got jacked up because the universities knew that they could get away with it. I imagine a similar thing will happen here.

The only true solution is to have free public higher education like the rest of developed nations do.

[–] [email protected] 1 points 1 year ago

Sadly the "rest of" is not only unnecessary but also inaccurate

[–] [email protected] -2 points 1 year ago

The true solution was to not mess with the system we had. Where the state schools were nearly free and debt was easy to discharge. The problem was they made it impossible to discharge.

[–] [email protected] 1 points 1 year ago

This program will actually save my family more money than the program shut down by SCOTUS. Our loans were never (and are never) going to be completely forgiven, and that's fine. We owe collectively ~$90k. This plan is a manageable path to payoff for us, at least.

[–] [email protected] 11 points 1 year ago (1 children)

Fed loans should be scrapped, the reason college is so expensive is colleges see that the gov will give loans to anyone and back them up. The second that this became the norm, these colleges just saw a blank check.

[–] [email protected] 7 points 1 year ago (1 children)

Not sure how effective that would be. It would have to be paired with regulation on the cost of college tuition for it to actually do anything.

And even then, a "more affordable" college education still is unobtainable to many students. Most people have zero savings or even a negative net worth.

https://www.credit.com/blog/average-savings-by-age/

[–] [email protected] 0 points 1 year ago (1 children)

So you're solution is to allow people who have no savings and negative net worth to borrow hundreds of thousands of dollars that they cannot get rid of even via bankruptcy? If college tuition was 3k a semester or per year...way more people could afford it.

[–] [email protected] 1 points 1 year ago (1 children)

Bro did you read my comment, I gave you your answer and said it should be regulated to be more reasonable

[–] [email protected] 1 points 1 year ago (1 children)

How do you plan on doing that though?

[–] [email protected] 1 points 1 year ago (1 children)

... putting a cap on tuitions based on poverty line? Subsidizing tuitions for people relative to poverty line? There are many ways to accomplish this it's not impossible to make tuitions reasonable for people who can afford them and attainable for people who can't. We all benefit from people being more highly educated

[–] [email protected] 0 points 1 year ago (2 children)

So the person who is $1 above the poverty line gets shafted? Most students could just not be claimed by their parents and instantly be below the poverty line.

[–] [email protected] 1 points 1 year ago

Also you have to actually be independent to claim yourself as independent... have you actually gone through that process? You have to literally provide proof that your parents either A) could not help fund your education or B) are estranged or dead, and also have to sign an affidavit. Source: I had to do this myself in college

[–] [email protected] 1 points 1 year ago (1 children)

What? You do know that the poverty line is used as a base reference often right? Usually government assistance programs will qualify based on anyone below X% of the poverty line like 200% or something. You don't have to be at or below the poverty line to qualify.

I really don't know if you're being serious, but the points you're bringing up seem like nonsense. Obviously there are ways to manage these things, it just depends on how you want to go about it.

[–] [email protected] 0 points 1 year ago

The point is, you're still allowing colleges to charge whatever the fuck they want and they know the feds will pay it. Without the loans they've got to actually get serious about the bullshit spending they do and properly price the cost of attendance.

[–] [email protected] 25 points 1 year ago (2 children)

He tried total elimination. But Republicans and the activist SCOTUS ruined that dream.

[–] [email protected] 5 points 1 year ago* (last edited 1 year ago) (1 children)

This always baffles me. I hear people say "I'm never voting for a Democrat again! They couldn't get student loan forgiveness done!!"

You think Republicans will get student loan forgiveness done? You think not voting will get student loan forgiveness done? Think again.

Biden and Democrats are doing everything they possible can in a hostile environment where Republicans sue as soon as any forgiveness is on the horizon. And Trump's SCOTUS is there to help Republicans in that effort.

Elections have consequences! Vote!

[–] [email protected] 1 points 1 year ago

Those people are liars. They were never going to vote for a Democrat.

[–] [email protected] -2 points 1 year ago (1 children)

No, he didn't. He tried the motions. The President does not have to collect on a debt or collect a tax without Congress forcing it. Which Congress can't practically do.

[–] [email protected] -1 points 1 year ago

Biden chose to restart payments.