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Thread: Flood Of Students Demanding Loan Forgiveness Forces Administration Scramble

  1. #1

    Flood Of Students Demanding Loan Forgiveness Forces Administration Scramble

    "Loan forgiveness creates incentives for students to borrow too much to attend college, potentially contributing to rising college prices for everyone," is a study's warning over government plans that allow students to rack up big debts and then forgive the unpaid balance after a set period. As WSJ reports, enrollment in student debt forgiveness plans have surged nearly 40% in just six months, to include at least 1.3 million Americans owing around $72 billion. The administration is looking to cap debt eligible for forgiveness, as President Obama's revamped Pay As You Earn scheme has seen applications soar and is estimated to cost taxpayers $14bn a year. The 'popularity' of the student loan bailout plan surged after Obama promoted it in 2012, and now the administration must back-track as costs have massively outpaced government predictions.




    We have been aggresively focused on the government's blowing of the student loan bubble...
    Student debt has nearly doubled since 2007 to $1.1 trillion, disproportionately driven by the growth in graduate-school debt.
    And questioned the need to incur such massive credit-fueled costs of tuition only to gain a low-paying job...
    Flood Of Students Demanding Loan Forgiveness Forces Administration Scramble | Zero Hedge

    $1.1 trillion of student debt? I feel sorry for all the young people, another out of control spending and political failure...
    Those who can make you believe absurdities can make you commit atrocities.

    Voltaire


  2. #2
    The Federal student loan system has been a disaster for many years.

    This is another excuse for deadbeats to scam the system. The way the system works is that a student's payments are directly tied to their income. If they are not making much money, their loan payments are very low. If they make good money, the payments are raised and payback is accelerated.

    Some who have have seriously tried to find jobs and could not probably have a reason to delay payments. Others, like the typical Occupy Wall Street crowd are clearly deadbeats. I saw numerous interviews with those morons who claimed they could not find a job, but also claimed to have turned down several job offers of less than $100,000 because they felt they were worth more.

    I also know of people who claimed they never paid back their student loans and felt that the government money was an investment in them as a taxpayer.

    Every penny that's forgiven is an added expense to taxpayers. Honest students who work hard and find good jobs pay the penalty, while the bums want a free ride at taxpayer's expense. It's the same story with too many government programs.
    "Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." -- Benjamin Franklin


  3. #3
    Well, if the policy doesn't work, the taxpayers will get the tabs like any other great socialist ideas btw, their slogan is " responsible but not guilty" which means that they are responsible for their policy but not accountable for their actions. The problem of this is that $1.1 trillion is involved and an additional $1.3 trillion will be involved until 2024 according to the CBO, that's the side effect of the centralized power.
    Those who can make you believe absurdities can make you commit atrocities.

    Voltaire


  4. #4
    The real problem I have is when people demand that taxpayers foot the bill for loans that they are personally legally bound to pay back. That is no different than welfare scams, or Social Security Disability scams. All these systems are broken and loaded with fraud.

    No one forced these people to take out student loans. If you cannot afford to go to college, you either take out a loan or you do not go to college.
    "Democracy is two wolves and a lamb voting on what to have for lunch. Liberty is a well-armed lamb contesting the vote." -- Benjamin Franklin


  5. #5
    Quote Originally Posted by TopDogger View Post
    The real problem I have is when people demand that taxpayers foot the bill for loans that they are personally legally bound to pay back. That is no different than welfare scams, or Social Security Disability scams. All these systems are broken and loaded with fraud.

    No one forced these people to take out student loans. If you cannot afford to go to college, you either take out a loan or you do not go to college.
    I will not put it the same way, but every time that a bank, a politician or group are offering some super duper deals that a lot of people cannot resist are the one responsible. They are at the top positions in the society, they should use their supreme intelligence to lead by example, not to screw the others!
    Those who can make you believe absurdities can make you commit atrocities.

    Voltaire


  6. #6
    It is so true: “For the love of money is a root of all kinds of evil, for which some have strayed from the faith in their greediness, and pierced themselves through with many sorrows.”

    From the New Testament
    Those who can make you believe absurdities can make you commit atrocities.

    Voltaire


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