OR....since its income based, households making 125k or less, it DOES help lower income and middle class. This would be like a jubilee for the country. I have friends who are waiting to retire until they pay off the last of the loans. I think this is one bubble they should pop and overhaul this money laundering scheme.
When the government sets the top limit, that's what the price becomes. This is why education is so expensive. This is the beginning of financial enslavement to the government.
This could also free up some cash and open opportunities like children and home ownership.
Obviously debt cancellation should not happen until the education wound stops bleeding.
Agreed, but relief may trigger that. It's a house of cards. I knew something was up when the carpet bagged gov of az, who took the stage from being financially in the black to red, ended up with an appointed position in the Univ Cal school system. It's part of the swamp!
Good points.
Is the plan for the government to pay the loans or that the loans would be scratched off the books?
OMW - I can't imagine being near retirement age and still having student loans - that would be awful.
It is awful. The loans can't be wiped with banruptcy. They are at fixed interest rates of apps 6-8% or flexible based on prime + a percentage of 3-4. People can only make minimum payments and never escape. I think they will get wiped from books. This needs to happen. It's as predatory as the mortgage fiasco. AND once kids get signed up for these, the credit card companies come knocking!
When my friends got educated they were looking at careers where things were optimistic... People had pensions, companies were doing well, economy looked up, banks paid interest in accounts, gas was cheap, a good car was less than 30k, and not everyone was in a health crisis! It was a trap!!! Snapped shut on 911!
I'm on a tablet. If I was on a keyboard, I would type more.
This was at least 15 years ago but I knew someone who had paid all their loans off who got a notice that they owed thousands on XYZ loan. I may have this a little mixed up, but it turned out to be something like the original loan company had sold/merged with another company (through which my friend had paid off the loan.) He finally got it straightened out (and I'm sorry I don't remember the details) but it makes you wonder how many people, due to situations like this, got bills that they shouldn't have and paid them.
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