Thune: Loan Forgiveness is Not a Solution for the Student Debt Problem
“I hope President Biden will resist Democrats’ calls to put taxpayers on the hook for billions of dollars in student loans.”
Click here or on the picture above to watch Thune’s speech.
WASHINGTON — U.S. Sen. John Thune (R-S.D.) today discussed Democrats’ recently introduced resolution calling for President Biden to forgive $50,000 of student loan debt per American. While high college costs and student debt are a problem, Thune does not believe that blanket loan forgiveness is the answer. He proposed alternative solutions such as encouraging affordable education options like community and technical colleges and ensuring that graduates have access to good-paying jobs. Thune introduced legislation that would allow employers to help employees repay their student loans. The Employer Participation in Repayment Act would allow employers to make tax-free payments on their employees’ already-existing student loans.
In my opinion many universities have acted in bad faith.
There was damage .. this is complicated.
But we should start from the tough truth and work from there until we can get to one of many acceptable remedies for America’s abused college students/graduates (we were targeted and turned into social network fodder in a big experiment that should be tried in Geneva in my opinion).
Working from the truth ..
You know, like how Thune understood and recognized obvious and massive election fraud, then fought tooth and nail to preserve the integrity of our elections. That kind of hard work and personal risk really pays off .. it’s how heroes are made.
How about just lower the interest rates, or potentially eliminate them? I don’t think most people realize getting a post graduate degree, lets say for law, will put you in about $250k of debt. I have heard of some going to the more prestigious private schools graduating with $500k of debt. Put that in a payment plan of 8.5% interest, and you have a situation where you can’t make the payment, then they get on income based repayment, and donate 10% of their money to the big gov while not touching principal. What will this look like after 20-25 years when the loan is “forgiven”?
Now I know they made the choice to go to school, but that investment in our economy for a higher paying job is a good thing, and I feel supporting that development of education supports economic growth. Dragging things out for another 10-15 years when this “forgiveness” is going t happen will just postpone a disaster. We need to do something to make it possible for some of these borrowers to get out of debt. Raise wages or create a system that works.
The forgiveness depends on the type of work they do. If they work nonprofit or government, forgiveness is granted at 10 years and is not considered a taxable event. If any for profit: 20 years and the forgiveness is taxed as income. This is likely going to be paid for by home refinance, because I doubt many will have 100k just sitting around.