BREAKING: Biden looking to forgive “substantial amount” of student loan debt

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The problem isn't government aid, its that there aren't associated price controls for universities accepting student loans. So schools just keep jacking up tuition and fees.

And NONE of the rising costs have anything to do directly with your education. Its all the brochure bait luxury items like $100 million rec centers and on-campus museums.

EDIT. If theres a student loan bailout you can be universities will jack up prices again to get their cut.
Yep...government loans are subsidizing university bloat.

State U can charge 3x as much in tuition compared to 2002. Johnny Smith wants to go to State U. He can get loans to cover what any scholarships and other financial aid can't cover. State U gets paid.

At my uni, they added all kinds of state of the art shyt while I was there: fancy freshman dorms, super upgraded dining hall, quadrupled the size of the gym with all the Olympic platforms you need, bigger student union and a MUCH bigger career center (which helped me get a shytload of interviews including my first after college job).

It paid off for me, but that's not the case for everyone.
 

CarmelBarbie

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This is great news. I’m so happy for everyone who will get $ taken off from their loans. He’s definitely making history as far as the things he’s doing. The first President that we can say did this. I know people feel like more could have been taken off and I do agree, for example I know black women have a higher student loan debt and I would love to see even half of it removed for them. But for now this is good news. Can’t hate on it.
 

OperationNumbNutts

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Threads on this topic are pointless. This thread always plays out the same way. Of course most people are going to be excited that he may pay off or assist on some level with schools loans because it affects them (in most of the cases). I wouldn't be entirely against money being applied towards loans but there are consequences that are predominantly going to affect the average individual and not billionaires as other have suggested. More money in the system does drive up prices but I think most would be fine with that if they didn't have school loans payments now but how much it drives up prices does remains to be seen. I also understand the argument of those who did pay their loans off and not because of higher paying jobs but sacrifices in spend. I wonder how this thread would go if Biden was focused on the future of college affordability in lieu of cancelling debt as both would probably carry a cost to taxpayers, just wondering what people would prefer.
Consequences like what. :comeon: Did you say the same when people like Tom Brady (yes the QB) received PPP money or the LA Lakers before they returned it? I do agree the issue of college affordability should be addressed. Still I don't understand why people don't say anything when businesses get money but have a problem when people do. A lot of the same colleges that are state schools literally get from money from state appropriations annually and they still go up on tuition. Yet people don't say anything.
 

GetSomeMoney

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Consequences like what. :comeon: Did you say the same when people like Tom Brady (yes the QB) received PPP money or the LA Lakers before they returned it? I do agree the issue of college affordability should be addressed. Still I don't understand why people don't say anything when businesses get money but have a problem when people do. A lot of the same colleges that are state schools literally get from money from state appropriations annually and they still go up on tuition. Yet people don't say anything.
I literally provided one example right after my comment about consequences, we are seeing higher inflation right now partially because of increased demand because more money was added into the system because of stimulus (yes it was needed though). When you cancel student loans or print more money for stimulus, you are adding more money into the market which in turn leads to more inflation (more money available increases demand). Yes the inflation now is not entirely due to more money into the system but it is a factor. Also with student loan relief, these colleges are going to find ways to make that money back and may entirely take advantage of this situation by increasing tuition even more considering the fact that presidents are willing to cancel a part of loans. I am cool with the 10k loan relief but it's a band aid, the system needs to be overhauled, there is no reason why college should cost what it does and I would also like to see many degree options eliminated from colleges to help an 18 year old from ruining their life by picking a useless major.
 

OperationNumbNutts

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I literally provided one example right after my comment about consequences, we are seeing higher inflation right now partially because of increased demand because more money was added into the system because of stimulus (yes it was needed though). When you cancel student loans or print more money for stimulus, you are adding more money into the market which in turn leads to more inflation (more money available increases demand). Yes the inflation now is not entirely due to more money into the system but it is a factor. Also with student loan relief, these colleges are going to find ways to make that money back and may entirely take advantage of this situation by increasing tuition even more considering the fact that presidents are willing to cancel a part of loans. I am cool with the 10k loan relief but it's a band aid, the system needs to be overhauled, there is no reason why college should cost what it does and I would also like to see many degree options eliminated from colleges to help an 18 year old from ruining their life by picking a useless major.
Do disrespect but some of the assessment is flawed. This relief isn't like PPP or other covid money that went directly into the economy. This is relief going to entities that administered the loans. Its a different discussion for people who has less than $20k students loans who will have more disposal income but I'm certain that is a small number. Also, this isn't going to impact colleges as you put it. They are not losing money where they have to make up the cost. These already received the tuition. It's the student that's gettng their balance reduced and the entity that provided the loan will get paid which primarily is the government. As for inflation, it was already happening prior to covid. As for demand most of those talks are bullshyt. More people are driving, there's a war in UK, and prices are going down. There's more to it than a supply and demand issue that people like to float around. I do agree the system overall does need to be changed.
 

GetSomeMoney

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Do disrespect but some of the assessment is flawed. This relief isn't like PPP or other covid money that went directly into the economy. This is relief going to entities that administered the loans. Its a different discussion for people who has less than $20k students loans who will have more disposal income but I'm certain that is a small number. Also, this isn't going to impact colleges as you put it. They are not losing money where they have to make up the cost. These already received the tuition. It's the student that's gettng their balance reduced and the entity that provided the loan will get paid which primarily is the government. As for inflation, it was already happening prior to covid. As for demand most of those talks are bullshyt. More people are driving, there's a war in UK, and prices are going down. There's more to it than a supply and demand issue that people like to float around. I do agree the system overall does need to be changed.
Yes the colleges already got their money when the loan was given but the government is going to need to find ways to cut or get that money back to pay for it and an amount of this cost to cover the relief is going to come from colleges, probably from reduced funding, colleges are going to find ways to get the difference. Increased demand is part of the reason for inflation, not the SOLE reason as I mentioned but it is a part, inflation was not happening at nearly the rate it has happened over the past couple of months, it hit a 40 year high in June. Most economist, conservative or liberal, agree that some small level of inflation would happen because of student loan forgiveness. If you don't think people having more spending power increases demand, I don't know what else to say, demand is one of main tenets .
 

OperationNumbNutts

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Yes the colleges already got their money when the loan was given but the government is going to need to find ways to cut or get that money back to pay for it and an amount of this cost to cover the relief is going to come from colleges, probably from reduced funding, colleges are going to find ways to get the difference. Increased demand is part of the reason for inflation, not the SOLE reason as I mentioned but it is a part, inflation was not happening at nearly the rate it has happened over the past couple of months, it hit a 40 year high in June. Most economist, conservative or liberal, agree that some small level of inflation would happen because of student loan forgiveness. If you don't think people having more spending power increases demand, I don't know what else to say, demand is one of main tenets .
Again and respectfully, your concept is off and inaccurate. I hope that is the case and you are not repeating what you heard from a news outlet or podcast. The student loan relief money is coming from the federal government. A good portion is actually back to the federal government since they are administering student loans. State colleges receive money from that individual state and that is done annually. Those are two different sources of funding. Colleges will not have to reduce anything and there is no difference to make up. As for demand, that is also inaccurate. Most colleges deny more students than they accept every year. They control the supply and demand. Some exceptions can made for smaller colleges. You seem to have a textbook theory of economics that is partially true. Yes inflation can be impacted by demand. However, inflation can occur because industries that influence the make sometime do what they want to do.
 
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