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* You’ve probably already heard about this…
In keeping with my campaign promise, my Administration is announcing a plan to give working and middle class families breathing room as they prepare to resume federal student loan payments in January 2023.
I'll have more details this afternoon. pic.twitter.com/kuZNqoMe4I
— President Biden (@POTUS) August 24, 2022
* Sophie Rodgers digs into the numbers for Crain’s…
On average, Illinois student loan borrowers owe $38,526, the seventh-highest average debt in the United States. This statistic is not alarming to Constantine Yannelis, associate professor of finance at the University of Chicago Booth School of Business. “Illinois, like New York, is an area which is dominated by one metro area where you disproportionately see a lot of young, educated people living. This is why you have high student loan debt.” […]
Recent graduates in Illinois age 25 to 34 … owe an average of $36,806. […]
But younger borrowers in Illinois are not among those hit hardest by student loan debt. On average, of Illinois student loan borrowers, those age 50 to 61 owe the most: $50,757. Those age 62 and up owe an average of $46,959. […]
And this outstanding debt will almost certainly negatively impact their retirement. “They can’t even get out of that debt by defaulting because, due to court rulings, Social Security income can be garnished,” Yannelis said. As a result, older Illinois borrowers still deeply in student loan debt might delay retirement and will consume less in retirement, which will affect the overall economy.
Discuss.
…Adding… LG Stratton…
Today, millions of people are receiving news about long-awaited financial relief. With President Joe Biden’s announcement to forgive thousands of dollars in student loan debt for most borrowers, a burden is being eased.
As part of my office’s initiative to build a strong, diverse teacher pipeline, I traveled across Illinois to hear from leaders and students at our state colleges and universities.
On these campuses, I heard and felt the deep concern people in all fields had about the looming presence of student loan debt and how it would not only impact their careers, but also their quality of life.
This student loan plan takes major steps to address that. Up to $20,000 in debt relief for Pell Grant recipients ensures that forgiveness intentionally uplifts those from lower-income backgrounds. Additionally, restructuring the repayment system will provide increased borrower support after the freeze on payments ends. More needs to be done, but this is a historic move forward that will change the lives of millions.
I commend the administration for these tremendous efforts. May this drive us to continue the work for equitable, affordable education in Illinois and across the nation.
* Sen. Durbin…
U.S. Senate Majority Whip Dick Durbin (D-IL) today released the following statement after President Joe Biden announced his Administration’s plan to eliminate $10,000 in federal student loan debt for borrowers making less than $125,000 a year and to extend the student loan payment freeze until December 31:
“Tens of millions of Americans are plagued by student loan debt in pursuit of a quality education. Today’s announcement by President Biden is a crucial step to enable low- and middle-income borrowers—especially communities of color—to eliminate their debt so they can buy a home, start a business, save for emergencies, and fully participate in our economy. President Biden and Congressional Democrats are delivering on our promises and focused on lifting up working families and the economy.”
Today’s announcement also allocates up to $20,000 of debt cancellation for Pell Grant recipients. On average, Illinois students owe $38,526 in debt after graduation.
Durbin has long been an advocate for widespread student debt relief. In August 2021, Durbin introduced the bipartisan FRESH START Through Bankruptcy Act, which would restore the ability for struggling borrowers to seek a bankruptcy discharge for federal student loans after a waiting period of ten years. Unlike most other types of debt, student loans are not dischargeable in bankruptcy except in rare circumstances.
* AG Raoul…
Attorney General Kwame Raoul today issued the following statement regarding the announcement from President Joe Biden’s administration that it plans to cancel $10,000 in debt for borrowers who earn less than $125,000 per year and $20,000 in debt for Pell grant recipients.
“Higher education should be within reach for all Illinoisans without the fear that they will be saddled with lifelong debt. The administration’s announcement today is a clear acknowledgment of the burden student loan debt imposes, and a response to repayment and forgiveness programs that have been historically and systemically flawed.
“While long-term reforms to the student loan system in this country are desperately needed, I commend the Biden administration for offering some immediate relief to millions of student loan borrowers.”
Attorney General Raoul has long advocated for protections for student loan borrowers. In May, Raoul called upon President Biden to cancel federal student loan debt, and he was joined by other attorneys general. Earlier this month, Raoul led a coalition of attorneys general calling on the U.S. Department of Education to give public servants more opportunities for loan forgiveness.
The Illinois Attorney General’s office continues to be a national leader in investigating and enforcing consumer protection violations in the higher education field. In 2022, Raoul’s office led a nationwide settlement against Navient, the country’s largest student loan servicer, that resulted in $5 million in restitution, and more than $133 million in debt cancelation, for Illinois borrowers. In 2021, Raoul’s Know Before You Owe legislation was enacted, ensuring that Illinois student borrowers have information about their federal aid eligibility before they turn to more costly private loans. And along with overseeing the rollout of the state’s first Student Loan Ombudsman, a position created by the Student Loan Servicing Rights Act to provide resources for borrowers who are struggling to make payments, Raoul’s office has recently provided $14 million in relief to private student loan borrowers who attended ITT.
Student borrowers who have questions or are in need of assistance can call the Attorney General’s Student Loan Helpline at 1-800-455-2456. Borrowers can also file complaints on the Attorney General’s website.
* US Rep. Mary Miller…
CONGRESSWOMAN MARY MILLER (R-IL) released the following statement on President Biden’s announcement on student loan “forgiveness”:
“Today, Joe Biden announced a $300 billion taxpayer-funded bailout for leftist colleges and universities that prey upon young people by selling them worthless “humanities” degrees so they can become foot soldiers in the Marxist revolution destroying America,” Miller said. “In the midst of the Biden Recession, Joe Biden is using working class taxpayers to pay off his donors and voters at a time of historic debt, and record inflation.”
“The blue-collar working class is now saddled with the cost of paying off “elite” institutions with billion dollar endowments. They defrauded young people by exaggerating their future earning power that would enable them to pay back those loans.”
“Parents sacrificed for years to save for their children’s college expenses and many students forfeited going to the school of their choice and instead choose community college or instate tuition. Some didn’t go to college because it was unaffordable and didn’t want to pay back loans. Many people worked full time and lived at home to pay for college and lots of graduates have been making college loan payments for YEARS! President Biden’s decision to bailout colleges and universities adds insult to injury and is completely irresponsible.”
“A new majority in Congress must investigate the staggering increase in costs for college degrees, the disconnect between those rising costs and the job prospects of graduates who cannot pay back these loans, and the corrupt endowment system! The U.S. Department of Education’s role is to protect and defend the TAXPAYERS, not the leftist colleges and universities with billion dollar endowments that prey upon borrowers! It’s time to defund and eliminate the U.S. Dept. of Education.”
posted by Rich Miller
Wednesday, Aug 24, 22 @ 11:00 am
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Remember Democrats are the party of the little guy.
The 65% of Illinois residents without a college degree will now be on the hook for $10,000 in student loan debt from people whose lifetime earnings will be anywhere from $900,000 to $1.5 million dollars higher.
https://www.ssa.gov/policy/docs/research-summaries/education-earnings.html
Comment by Lucky Pierre Wednesday, Aug 24, 22 @ 11:06 am
Interesting that in IL those aged 50-61 owe the most. You’ll see most arguments blaming all of this on millennials with “useless” degrees.
This will help a lot of people, in a big way for some and in a small way for others.
Comment by Peanut Gallery Wednesday, Aug 24, 22 @ 11:06 am
People over 50 still average $50K in student debt?? That’s a disgusting indictment of our higher education system as a whole.
It’s not like we are a modern industrial society with high average incomes — like the other countries who have free university education.
Comment by walker Wednesday, Aug 24, 22 @ 11:10 am
It’s important to remember he already canceled debt for people who attended for profits that were diploma mills and expanded the PSLF program for those that work at nonprofits or government agencies. This is likely to help those most in need who have not completed a degree or award and are the biggest group to default. He is also working to repayment being capped at 5% of income. The two components that are left are to me are making loans dischargeable in bankruptcy and then something to deal with retirees
Comment by ArchPundit Wednesday, Aug 24, 22 @ 11:11 am
–Peanut Gallery–
I wonder how much of the debt in that age category is from Parent Plus loans taken to help children through college? I don’t know if that is all lumped together in these figures.
Comment by tea_and_honey Wednesday, Aug 24, 22 @ 11:15 am
This is bad policy and bad politics. It will alienate those who paid off their debt, those who never borrowed, and those who didn’t go to college. It will only help a small number of people, and even then, the relief is impossible to distribute fairly. Nothing good will come from keeping this promise.
Comment by 47th Ward Wednesday, Aug 24, 22 @ 11:16 am
=The 65% of Illinois residents without a college degree will now be on the hook for $10,000 in student loan debt from people whose lifetime earnings will be anywhere from $900,000 to $1.5 million dollars higher.=
And those “higher earners” pay higher taxes that pay for social security, medicaid, etc… which the “lower earners” use in in greater numbers. LP, Sounds like your crowd would be happy about the entitlement class finally bearing their share of the burden.
Comment by Chito Wednesday, Aug 24, 22 @ 11:16 am
Because of struggles early in life, I didn’t finish my degree- but was paying back loans- and accrued interest, until my mid fifties. I’m thrilled for people who will be less burdened. Higher education has become a giant, immoral generational wealth transfer.
Comment by West Sider Wednesday, Aug 24, 22 @ 11:16 am
glad to see taxpayer’s finally bucking up for those two spring break trips my daughter went on
Comment by Blue Dog Wednesday, Aug 24, 22 @ 11:17 am
- Lucky Pierre -
Explain how a teacher with $90,000+ debt, earning $33,000 a year, as an example, should still be in debt late in life in an industry just not designed for pay equal to the education required.
I know, I know, “look at their pensions”
Then who exactly would wanna be a teacher?
Oh.. so there’s a shortage of teachers? No respect for teachers?
Are we now a society where only the wealthy deserve education?
Have we always been that society?
Comment by Oswego Willy Wednesday, Aug 24, 22 @ 11:17 am
Why not allow for a refinance to lower rates or just make it interest free? I agree with @LP those without degrees and working hourly jobs will be paying the fare on this. While watching those with degrees earn more money than them in the long run.
Some will say- well then they should get their degree if they want to earn more. Not wrong if that’s what they want.
However if they don’t want to get their degree they shouldn’t have to be forced to get a degree nor should they have to pay for someone else’s.
Comment by Frank talks Wednesday, Aug 24, 22 @ 11:19 am
why not allow for a refinance. silly you. it’s an election year.
Comment by Blue Dog Wednesday, Aug 24, 22 @ 11:20 am
You might demonstrate some of the anger her to your state legislators who have decreased the state’s share of public colleges for 60 years requiring far more people to take student loans out. This should be viewed as a transfer from the federal government to the state governments as much as a transfer to individual s.
Comment by ArchPundit Wednesday, Aug 24, 22 @ 11:21 am
I didn’t see any specifics yet on whether or not sleepy Joe addressed the ridiculously high cost of college.
Comment by Blue Dog Wednesday, Aug 24, 22 @ 11:28 am
==decreased the state’s share of public colleges for 60 years==
You want pensions funded or not? Because I don’t think the state was spending $2 billion on SURS a generation ago like they are now.
It is not uncommon for victims of fraudulent products or deceptive practices to receive refunds. The key is ensuring no one else falls victim. Either the schools counter-sign the student loans for these programs in question or financial institutions are forbidden from offering financing. Warning labels as well would help consumers make the right choice as well.
Comment by City Zen Wednesday, Aug 24, 22 @ 11:31 am
Student loan debt is a major issue. However, part of the problem is that there is no requirement that loans match potential employment and costs. It would be better to as part of the student loan fix to also limit what colleges can charge and be eligible for loans.
The other problem is that many student loans that are out there are not Federal student loans. They are held by private banks either because the students had hit their Federal limit or because the students opted to refinance their Federal loans into lower rate private student loans. For those of us who made the wise financial decision to lower our rates and therefore pay less in interest, we are being penalized for fiscal responsibility.
Comment by Unionman Wednesday, Aug 24, 22 @ 11:31 am
==I wonder how much of the debt in that age category is from Parent Plus loans taken to help children through college? I don’t know if that is all lumped together in these figures.==
I had the same question. It also explains why Gen X is the first generation in American history to be worse off financially than their parents.
Comment by SAP Wednesday, Aug 24, 22 @ 11:33 am
Blue Dog, talk to your state legislators to start funding colleges at the proportion they did 50 to 60 years ago. It’s part of the problem in the higher Ed sector, states largely fund higher ed and federal programs help fund the students.
Comment by ArchPundit Wednesday, Aug 24, 22 @ 11:33 am
@Chito- so lower income folks should pay the fare for others to earn more money because they’ll use more social services than them eventually?
Im sure the higher income earners with a college degree will gladly pay more in taxes since their loans were forgiven?
So essentially the trickle down theory?
Comment by Frank talks Wednesday, Aug 24, 22 @ 11:33 am
@Frank, I was snarkily responding to LP for hating on this plan.
Comment by Chito Wednesday, Aug 24, 22 @ 11:37 am
Citizen zen, the feds have created a series of accountability measures for programs and colleges requiring completion rates and employment. Those have shut down the worst actors and caused many colleges to redo programs and provide bette support. We have also forgiven specific loans from fraudulent proprietary schools. Schools also have to offer counseling on student loans though it is admittedly too little and often ineffective
Comment by ArchPundit Wednesday, Aug 24, 22 @ 11:38 am
I know it won’t happen but I would like to see the non-debtors receive $5000. There are those that did not go to college because they could not ask their parents and were afraid of debt. Likewise, there are those that went to college and did whatever they could, including working for the universities or other jobs, that kept them from debt but effected their grades and future earnings. Maybe 25 to 40 years olds with no debt deserve a special tax rebate, even if it is smaller.
Comment by Lurker Wednesday, Aug 24, 22 @ 11:38 am
== Remember Democrats are the party of the little guy. The 65% of Illinois residents without a college degree will now be on the hook for $10,000 in student loan debt from people whose lifetime earnings will be anywhere from $900,000 to $1.5 million dollars higher. ==
How about the fact that these onerous loan balances exist largely because of state and federal disinvestment in higher education? They were paying this before, when the state was funding higher education at an appropriate level, when people like you went to community college for $35/credit hour and a full semester’s tuition at UIUC was $2500-ish PER YEAR in 1992. Now community college costs $170/credit hour and a semester at UIUC runs $10-12k PER SEMESTER, and that is BEFORE housing. Had we been funding our community colleges and universities properly, this never would have happened.
This wipes the balance for about 30% of current borrowers, either wipes out or cuts in half the balance for 51% of borrowers. Most of those people have either been paying for decades on income-driven plans, and are either community college grads or college dropouts who do not have that earning potential you talk about.
So yes, they are the party of the little guy, and anybody who says otherwise has never once looked at the data of who has student loans nor looked at a college tuition bill since they graduated in the early 90s.
Comment by Leap Day William Wednesday, Aug 24, 22 @ 11:39 am
“The 65% of Illinois residents without a college degree”
Many people without a college degree still have college student loan debt.
According to data compiled by the U.S. Department of Education’s the National Center for Education Statistics and and analyzed by Mark Huelsman, a fellow at Temple University’s Hope Center for College, Community, and Justice, 38.6% of people who took on student loan debt do not complete their degree within six years.
This debt relief will be of substantial help to those nearly 4-in-10 borrowers with college student loan debt but no college degree.
– MrJM
Comment by MisterJayEm Wednesday, Aug 24, 22 @ 11:39 am
For U of I, Urbana students, some of that borrowed money went to pay for remodeling luxury boxes in the football stadium and the State Farm Center. So now, more of our tax money paid for those. Go Illini.
Comment by filmmaker prof Wednesday, Aug 24, 22 @ 11:40 am
For students at U of I, Urbana, a portion of those loans went to pay for remodeling luxury boxes in the football stadium and State Farm Center. Which now means that our tax dollars helped pay for those. Go Illini.
Comment by filmmaker prof Wednesday, Aug 24, 22 @ 11:42 am
===some of that borrowed money went to pay for remodeling luxury boxes in the football stadium and the State Farm Center.===
Weren’t those bonded out and/or had fundraising for such work?
Can you show your work?
Thanks
Comment by Oswego Willy Wednesday, Aug 24, 22 @ 11:42 am
sorry about double post. my computer glitched.
Comment by filmmaker prof Wednesday, Aug 24, 22 @ 11:43 am
There’s a fun little trend playing out on Twitter today, in which some self-proclaimed big thinker decries this plan for partial loan forgiveness, and the first reply is someone with a screenshot of said big thinker’s fully forgiven 6-7 figure PPP loan. Weird how those and the targeted tax cuts for the mega-rich never raise concerns about harming the middle class.
The people who say racking up six figures in student loan debt is a choice are the same ones who demand college degrees for entry-level work, and believe such positions are not deserving of fifteen dollars an hour.
Comment by Roadrager Wednesday, Aug 24, 22 @ 11:44 am
Great handout to certain folks right before an important election. In terms of policy not great as it destroys the idea that you keep your word when you sign a contract. It unfairly burdens those that couldn’t /didn’t want to go to college. I’m thinking truck drivers, plumbers, HVAC professionals, and the like that saw the cost of college as crazy high and pursued alternate career routes to avoid the debt – now they are on the hook.
Comment by Donnie Elgin Wednesday, Aug 24, 22 @ 11:45 am
——-Maybe 25 to 40 years olds with no debt deserve a special tax rebate, even if it is smaller.
People of that age with no college debt generally had parents who made enough money to not need loans or had the GI Bill. Who probably deserves a rebate most are those who paid off their loans already.
Comment by ArchPundit Wednesday, Aug 24, 22 @ 11:46 am
What happened to personal responsibility? My wife and I worked our butts off to pay off her student loan debt and then, when we had kids, we saved up and eventually paid off their student loan debt.
Comment by Buying votes Wednesday, Aug 24, 22 @ 11:46 am
=The 65% of Illinois residents without a college degree will now be on the hook for $10,000 in student loan debt from people whose lifetime earnings will be anywhere from $900,000 to $1.5 million dollars higher.=
Hey genius - what’s the mechanism to get those folks on the hook? Was it an automatic tax increase for everyone who didn’t go to college? I missed that part.
By the way - you voting for Bailey or Pritzker, you putz
Comment by Joe Bidenopolous Wednesday, Aug 24, 22 @ 11:47 am
- Oswego Willy -
Here in the hellhole of Chicago, the lowest paid CPS full-time “regular teacher” — so not those in residency/training programs — makes $57,868, not $33k. The average salary across CPS full-time regular teachers is over $87,000, and almost 3000 make more than $100,000. It may be a tough job, but plenty of people go into education here because they could not make anywhere close to that money anywhere else in the city, sorry, I mean in the fire-pits of Satan.
In any case, $10,000 in student loans on a 25 year repayment plan at current undergrad interest rates comes to $60 a month. So at least here in the fires of Mephistopheles himself, this will have little impact, other than for the Bidenites to say “Look how much we care. We will buy your kids lunch at McDonalds on two weekends a month.”
Comment by NotNotAStateEmployee Wednesday, Aug 24, 22 @ 11:47 am
===Chicago, the lowest paid CPS full-time “regular teacher”===
Now, describe a teacher, starting out, in rural America, even Illinois.
It’s bigger than your breathless need to describe Chicago in a way Bailey does.
If you feel those in rural America, poorer districts, don’t deserve quality teachers, or those teachers deserve far more pain.
I know, I know, mock the Chicago thing again.
I’m also told folks are choosing to work for CPS, but that might be another issue too.
Comment by Oswego Willy Wednesday, Aug 24, 22 @ 11:54 am
What about people who had student loans but have completely paid them off, even a “long time ago?” Do we get $10,000 worth of them forgiven? Or are we out of luck?
(I had about $54,000 in undergrad and grad school student loans which I had paid off completely 11 years ago. Attended college and grad school in the late 90s and early 2000s).
Comment by StateEmployeeThatIsNotInAFSCME Wednesday, Aug 24, 22 @ 11:55 am
BINGO
=38.6% of people who took on student loan debt do not complete their degree within six years.=
Thanks for doing the work MrJM
Comment by Cool Papa Bell Wednesday, Aug 24, 22 @ 11:55 am
Joe Bidenopolous,
=Hey genius - what’s the mechanism to get those folks on the hook? Was it an automatic tax increase for everyone who didn’t go to college? I missed that part.=
Thank you for nailing it. I was having a hard time articulating this idea that opponents are framing but you did it perfectly. They keep saying “burden” as if a special tax bill is heading their way.
Comment by Chito Wednesday, Aug 24, 22 @ 11:59 am
——truck drivers, plumbers, HVAC professionals,
All three of which may have college loans. Plumbers may not if they were apprenticed, because t most of the other two categories went to some sort of post secondary training.
Comment by Archpundit Wednesday, Aug 24, 22 @ 12:05 pm
Ow, one thing about teachers is they qualify for the Public Service Loan Forgiveness Program that has been improved and after making 10 years of income adjusted payments their loans will be forgiven and there are a couple more programs for those in urban and rural schools as well.
Comment by ArchPundit Wednesday, Aug 24, 22 @ 12:09 pm
- ArchPundit -
Thanks. Appreciate that context too.
:)
Comment by Oswego Willy Wednesday, Aug 24, 22 @ 12:11 pm
== The 65% of Illinois residents without a college degree will now be on the hook for $10,000 in student loan debt from people whose lifetime earnings will be anywhere from $900,000 to $1.5 million dollars higher. ==
Hello, someone here with a college degree and without student debt I want to point out I am totally cool with this. Someone else can get a benefit without me getting a direct benefit and I will not get my shorts in a bunch. Because in the longer term I will see some benefits from this.
Heck making the remaining debt payable at prime seems like a good next step to me.
Comment by OneMan Wednesday, Aug 24, 22 @ 12:11 pm
Isn’t putz an uncivil comment? You can make your point without such nonsense.
Everyone who pays taxes will be responsible for forgiving $10,000 of debt of some of the most highly educated people in the nation who will earn far more money that they do.
That is called reverse welfare.
Comment by Lucky Pierre Wednesday, Aug 24, 22 @ 12:12 pm
== one thing about teachers is they qualify for the Public Service Loan Forgiveness Program that has been improved==
As well as state and federal employees too.
Comment by StateEmployeeThatIsNotInAFSCME Wednesday, Aug 24, 22 @ 12:27 pm
===“look at their pensions”===
Tier 2 pensions?
Comment by Anyone Remember Wednesday, Aug 24, 22 @ 12:27 pm
Archpundit,
That program is one of my faves. I definitely think that anyone working for a government should qualify for it. Like Public defenders, prosecutors and the medicos who work at Cook County Health. I would probably change it to just wipe out 10% per year so if they only work there for 2-3 years they still get a benefit. We need people in the public sector.
Comment by cermak_rd Wednesday, Aug 24, 22 @ 12:29 pm
This is only part of the solution. I would favor free higher education like someone mentioned above. But, at the very least they need to do something with colleges and universities charging outrageous tuitions. Limit the amount of loans an individual can take out in a given year and if a student qualifies for the loan limit the amount a college or university can charge a student to that max loan amount.
Comment by Demoralized Wednesday, Aug 24, 22 @ 12:35 pm
===Tier 2 pensions?===
You’re catching my drift…
Comment by Oswego Willy Wednesday, Aug 24, 22 @ 12:35 pm
Need to lower cost of college too. Universities have lost their minds
Comment by need Wednesday, Aug 24, 22 @ 12:36 pm
@Archpundit- those who got the GI Bill to pay for college signed a contract to give up their life if need be for the service of this country to get a college degree.
Maybe folks who want loan forgiveness should go serve their country and put their life on the line for their college debt forgiveness.
Signing a contract for your life compared to a debt note for a loan is far different.
Comment by Frank talks Wednesday, Aug 24, 22 @ 12:42 pm
==The 65% of Illinois residents without a college degree will now be on the hook for $10,000 in student loan debt from people whose lifetime earnings will be anywhere from $900,000 to $1.5 million dollars higher.==
I thought you’d be happy my hard-earned dollars are no longer going to the bloated federal government. /s
Have no fear, I will go stimulate the economy with my new found wealth.
Comment by twowaystreet Wednesday, Aug 24, 22 @ 12:44 pm
All you have to do with regard to the bellyachers is remember this headline on this very blog:
“Good news is always, always, always somehow bad”
Comment by Demoralized Wednesday, Aug 24, 22 @ 12:50 pm
“it destroys the idea that you keep your word when you sign a contract.”
Article 1, Section 8, Clause 4 of The United States Constitution did that when it authorized Congress to enact “uniform Laws on the subject of Bankruptcies throughout the United States.”
“It will alienate those who paid off their debt, those who never borrowed”
“What happened to personal responsibility?”
The federal government forgave $394.6 billion in more than 4 million loans to businesses through the Paycheck Protection Program — and you didn’t even notice.
– MrJM
Comment by MisterJayEm Wednesday, Aug 24, 22 @ 12:50 pm
==Ow, one thing about teachers is they qualify for the Public Service Loan Forgiveness Program that has been improved and after making 10 years of income adjusted payments their loans will be forgiven and there are a couple more programs for those in urban and rural schools as well.==
Have things improved with PSLF ? I thought I remembered that program having a low approval rate and a few of the top articles on a google search confirmed that.
Comment by twowaystreet Wednesday, Aug 24, 22 @ 1:04 pm
Nothing making tuition and interest fully tax deductible.
Nothing for those with graduate degrees.
Nothing for the high interest rates despite having the debt discharge proof.
Nothing to level the field with Euro debt free educational costs.
https://www.collegeavestudentloans.com/blog/how-much-does-medical-school-cost-average-medical-degree-tuition-costs/amp/
Comment by Chicago 20 Wednesday, Aug 24, 22 @ 1:05 pm
===and you didn’t even notice.===
Since you excerpted from my comment, I’ll respond. I did notice the PPP loan forgiveness, but I think you’re comparison is flawed. PPP was designed to keep employees paid while businesses were closed.
Student loans should be dischargeable via bankruptcy, but the Republicans eliminated that right in 2004. Please don’t tell me what I notice and what I don’t.
My point is Biden’s plan is both bad policy and bad politics. I stand by my comment.
Comment by 47th Ward Wednesday, Aug 24, 22 @ 1:06 pm
Can someone check if all these folks against this were —also— against forgiveness of PPP loans?
Thanks in advance.
Comment by Chris Wednesday, Aug 24, 22 @ 1:06 pm
===Nothing making tuition and interest fully tax deductible.===
You need legislation for that.
Comment by Rich Miller Wednesday, Aug 24, 22 @ 1:10 pm
I’m glad a few commenters mentioned the ever increasing cost of college and university. This flawed plan to help ease the debts of some people would at least be more tolerable if colleges which charged those outrageous tuitions, and also often facilitated the loans, were required to be major contributors to a fund for the payouts–not taxpayers.
Comment by Responsa Wednesday, Aug 24, 22 @ 1:29 pm
according to lawyersofdistinction.com, Illinois has the 5th most number of lawyers per capita, in the country. On average (nationally) lawyers owe an average of $168,000.00 in student loan debt. Definitely a correlation here.
Comment by Merica Wednesday, Aug 24, 22 @ 1:31 pm
To many of the other commenters: I paid off my student loans about 45 years ago, and I support the Biden plan. The emphasis on students who had received Pell is particularly good.
I was able to take out loans in much smaller amounts than today due to the divestment of state support for public universities. We students had a good deal back then.
Comment by Friendly Bob Adams Wednesday, Aug 24, 22 @ 1:32 pm
=== My point is Biden’s plan is both bad policy and bad politics. I stand by my comment ===
Wishing does not make it so.
66% of voters support student loan forgiveness, support rockets for voters under 35, and there is little difference in support between those who have college degrees and those who don’t.
Is it perfect policy? Nope.
But it is better than no policy.
Comment by Thomas Paine Wednesday, Aug 24, 22 @ 1:50 pm
We paid off my students loans 30+ years ago and financed college degrees for both children. I’m thrilled with this program. College should be free with minimal costs for post grad degrees. Investing in education and useful infrastructure is the best way to grow our economy and build a strong future for ourselves and all children. I’m fed-up with taxes for stadiums, stupid walls along the border and wars. Fewer military campaigns (Iraq, Vietnam and Afghanistan) with more schools, colleges, libraries, medical clinics and social services are how I want my tax dollars spent.
Comment by froganon Wednesday, Aug 24, 22 @ 2:05 pm
——those who got the GI Bill to pay for college signed a contract to give up their life if need be for the service of this country to get a college degree.
I wasn’t comparing so save your outrage for when you vacant read correctly.
PSLF has been improved and there is a window through October to get credit for past period even. It also works for non profits as well so if you or anyone you know might qualify check out the Dept of Ed site.
Comment by ArchPundit Wednesday, Aug 24, 22 @ 2:25 pm
Responsa it depends on what colleges you are talking about. The reason for public school increases is decreased state government support. The private universities are somewhat different but still complicated. A big reason universities increase tuition faster than industries is similar to healthcare in that it is a people intensive industry and so efficiencies are hard to realize
Comment by ArchPundit Wednesday, Aug 24, 22 @ 2:36 pm
Everyone should take a step back and realize this is a good thing that will positively impact hundreds of thousands of households. Monthly payments may go down if they’re not income based, some borrowers will only pay 5% of their monthly income towards the debt that remains, there’s another 4 months or non payment that will count towards loan forgiveness programs, and credit scores will immediately increase.
This is not everything I wanted. This is not the policy I would have picked as a compromise. This doesn’t do enough for some people (why the 10% of income remains in place for graduate school is beyond me, but oh well.)
This is a good thing for a lot of our friends, families, neighbors, and even people we don’t always agree with in Capitol Fax. Though when I say everyone take a step back, I mostly mean the people trying to create some kind of frivolous strawman about student loans.
Illinois has sold out it’s future by failing to adequately fund post secondary education. We should be grateful at the federal government trying to alleviate part of the burden we placed on kids while we cut public support for universities.
I just don’t understand how someone can be bitter about good news for so many people and pretend like this is going to be unpopular while they’re planing on voting for a seditious ham sandwich of a man child that can’t open his mouth without tripping over his hatred and bigotry.
This is a good thing, folks. Take good news when we get it.
Comment by Candy Dogood Wednesday, Aug 24, 22 @ 2:38 pm
=Everyone who pays taxes will be responsible for forgiving $10,000 of debt =
I’m also paying for PPP loans that I didn’t get, MFP payments to farmers, subsidized portions of crop insurance that don’t help me, I can’t make any money off the carried interest loophole being open, I used unemployment insurance once 15 years ago for 3 months but I’m on the hook there too, also I’m tired of paying for other people’s SNAP cards. I just want to only pay for things that directly help me.
Comment by Cool Papa Bell Wednesday, Aug 24, 22 @ 2:47 pm
I haven’t looked at the fine print but I am almost positive I will get $10k out of this.
Thank you, Joe Biden, and Democrats for making this happen.
This $10k will not change my life. It is less than I pay for childcare each year.
But it is a help to my family and makes our lives a bit easier after we endured some hard times including health challenges and income loss during the pandemic.
And it is a promise Biden made on the campaign trail that he has kept.
Cast me as a welfare queen if you want, but I have already paid ~$50k back to the government just in interest on my student loans which were set by the federal government at exorbitant 6.5%-8.5% interest at a time the Federal Reserve’s interest rate it charged banks was 0.20% or less the entire time I was taking out student loans. I have paid back tens of thousands in principal already too and will still have tens of thousands more to pay off (hopefully by the time I am ready to start paying for my kids college) even after this $10k in debt is wiped away.
Must say it is a trip though hearing how Republicans and some Democrats want to pit other Americans against me for getting this break when I haven’t heard a peep of protest about the PPP slush fund forgiving loans to businesses even when they laid off their workers. Or all the extra govt. money that got shoveled into the pockets of farmers when they were mad about the China tariffs Trump did.
But because this is something that might benefit past or current students people want to set their hair on fire about it? OK.
Comment by hisgirlfriday Wednesday, Aug 24, 22 @ 2:49 pm
I am all for any attempts to make college more attainable and affordable for everybody. Just remember how we feel about using our collective money from taxes to help those less fortunate when the next post about counties or states being “givers” or “takers” comes up. Many are quick to take an opposite stance when that subject comes up. Just yesterday I saw posts about some downstate counties being “takers” who receive $x back for every dollar they pay the state. You might not always agree with or like the people on the receiving end of benefits paid with your tax money, but that is the reason for taxes.
Comment by Good Idea Wednesday, Aug 24, 22 @ 2:58 pm
Good Idea - I think in many cases, the people making those arguments are not indignant about having those (mostly southern IL) counties “taking” many times what they put into the communal kitty. Rather, they are miffed that those recipients are not only are unappreciative of the assistance from more populous parts of the state, but indeed believe that downstate is sending its hard-earned dollars to Cook and the collar counties so they can blow it on inner-city welfare programs. Facts be damned.
It’s the ignorance and hypocrisy that irks some of us, not the fact that downstaters are disproportionately benefiting from our collective tax funds.
Comment by Dysfunction Junction Wednesday, Aug 24, 22 @ 3:14 pm
There is a lot of back and forth on this one, but I have not seen anyone call student loans what they have become in the last few decades - predatory. You have 17/18 year-olds who are just starting out in life being sold a bill of goods that is no longer true. “Sign the dotted line committing yourself to 10s of thousands of dollars in debt, that you don’t need to worry about now and can pay off down the road.” Then these kids leave school and can’t find jobs that pay a livable wage, much less enough to pay off these massive debts. We’ve done a disservice to the last 3 generations of kids that were sold the college dream and now this is a small but important step in repairing the harm that was done.
Comment by Misconceptions Wednesday, Aug 24, 22 @ 3:28 pm
-Can someone check if all these folks against this were —also— against forgiveness of PPP loans?-
Chris, I’m with you here. I’ve looked at the forgiven PPP loans in my community, and have noticed the new motor homes in their driveways. I’m going to have a conversation with a few of them about their hateful views. Also, I’m going to suggest they just take the money and shut up.
Comment by Stix Hix Wednesday, Aug 24, 22 @ 3:34 pm
“I’m also paying for PPP loans that I didn’t get, MFP payments to farmers, subsidized portions of crop insurance that don’t help me…
”
These were the result of legislation/budgets that were passed and signed by the president. So in theory you had a chance to call your representative and advocate for/against them, or offer suggested changes. The loan forgives is an Executive order - no input.
Comment by Donnie Elgin Wednesday, Aug 24, 22 @ 3:53 pm
=The loan forgives is an Executive order - no input.=
Except this was a very thing that Biden extensively campaigned for in 2020. This isn’t a scenario where he just randomly had an idea and did it without any due process, everybody coming out of the 2020 election after it was clear Biden had won knew he was going to do this.
Really, the only controversial thing should be that it took Biden this long to do it.
Comment by TJ Wednesday, Aug 24, 22 @ 4:00 pm
For Rep Miller: Excluding UofI, how many universities in Illinois have billion dollar foundations? None of the diretionals according to Guidestar.
Doesn’t this plan also cover loans for beauticians/Barbers, hvac, welding, nursing, truck driving and any number of other professionals who attended training in nontraditional college/trainging settings. Those loans for training are also expensive.
Comment by zatoichi Wednesday, Aug 24, 22 @ 4:18 pm
===how many universities in Illinois===
Rep. Miller rarely concerns herself with Illinois issues. She’s all about the DC Hollywood scene.
Comment by Rich Miller Wednesday, Aug 24, 22 @ 4:19 pm
@ 47th Ward - 43 million is not “a small number of people.”
Comment by the working poor Wednesday, Aug 24, 22 @ 4:24 pm
=What happened to personal responsibility? My wife and I worked our butts off to pay off her student loan debt and then, when we had kids, we saved up and eventually paid off their student loan debt.=
Who needs “personal responsibility” when you have parents that will pay off your student loans?
Comment by Chito Wednesday, Aug 24, 22 @ 4:26 pm
A big number indeed. Now, how many will qualify for relief under this plan? Hint: that number is smaller than 43 million. A lot smaller.
Comment by 47th Ward Wednesday, Aug 24, 22 @ 4:29 pm
===Now, how many===
This isn’t Google.
Comment by Rich Miller Wednesday, Aug 24, 22 @ 4:30 pm
According to this story, there are 43 million Americans with student loan debt. A big number. Only about 20 million will get relief from today’s action. A smaller number.
https://www.chicagotribune.com/nation-world/ct-aud-nw-biden-student-debt-20220824-w52u7zybdvahvkbrzpqyxhdgua-story.html
Comment by 47th Ward Wednesday, Aug 24, 22 @ 4:44 pm
===Only about 20 million===
That seems pretty big.
Roughly the population of New York state.
Comment by Oswego Willy Wednesday, Aug 24, 22 @ 4:49 pm
But not a small number.
Comment by TJ Wednesday, Aug 24, 22 @ 4:49 pm
People have brought up the issue of state government lowering their investments in colleges and universities. Yes, some of that has happened. But what has also happened is every time the Federal government has boosted subsidies or raised loan limits, the educational institutions have raised their tuitions by even more than the increased aid. Higher education is out of control, especially on the administrative side, which has grown exponentially. The real question is why? Could it have been that all the additional Federal regulations on education have driven this increase?
Comment by RNUG Wednesday, Aug 24, 22 @ 4:53 pm
And 23 million people who owe student loans get bupkis.
Comment by 47th Ward Wednesday, Aug 24, 22 @ 5:14 pm
Sorry RNUG, after re-reading your comment, I now see you were talking about how government regulations/mandates drive up costs in higher Ed. They do, but that’s not the primary driver of tuition inflation. Accreditation by the self-governing nonprofit organizations like the Higher Learning Commission, set the standard for degree requirements, faculty hiring and many other things before certifying that a college is, in fact, a college and they vouch for the quality of instruction. Higher Ed is very opaque.
I mistakenly assumed you were referring to the famous Bennett Hypothesis, first made famous by former Sec of Education William Bennett. The Bennett hypothesis is what I intended to call out as absurd, not your point that mandates add costs.
I will try to be more careful in my comment reading. I apologize.
Comment by 47th Ward Wednesday, Aug 24, 22 @ 7:36 pm
Bailey gets $200k+ from Trump Bailout Program… no biggie.
Middle class working folks struggling to make ends meet get $10k or less to help their student loan debt.. Ahhh… My eyes… The commie pinko marxist lefty heathens are spreading their filth upon the land.
Zzzzz
Comment by Sign of the Times Wednesday, Aug 24, 22 @ 10:46 pm
=== Just yesterday I saw posts about some downstate counties being “takers” who receive $x back for every dollar they pay the state. You might not always agree with or like the people on the receiving end of benefits paid with your tax money, but that is the reason for taxes.===
It’s not about liking and rural people are not exactly “takers.” Rural areas are less efficient than urban areas, and thus use more taxes per person. Imagine two bridges that are necessary to cross a river and both are the same size and cost the same to build. One is in an urban area and one is in a rural area. The rural bridge might have hundreds of crossing a day, the urban bridge will have thousands of crossings a day. Which bridge is more cost effective?
Comment by Da big bad wolf Thursday, Aug 25, 22 @ 5:52 am