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Potential student loan forgiveness by POTUS + it’s impact on college athletes

nystateofmind

C'est la vie
Joined
Dec 30, 2012
Messages
14,968
I don’t want this to devolve into a political argument, so I would like to hear your thoughts on this particular aspect of the idea and not debate the merits of the idea itself.

It was reported today that the President told Congress members at a meeting that’s he’s considering forgiving almost all federal student loan debt before the Midterm elections. This would obviously have massive ramifications.

Prior to NIL, I understand it was common for many college players to take out student loans despite the fact that they were on scholarship simply so they could use the student loan refunds to buy clothes, cars, jewelry, etc.

I’m wondering how the process would work for folks like them who didn’t actually use the loans for school.

Thoughts?
 

pubmedu

Recruit
Joined
Jul 6, 2015
Messages
190
I don’t want this to devolve into a political argument, so I would like to hear your thoughts on this particular aspect of the idea and not debate the merits of the idea itself.

It was reported today that the President told Congress members at a meeting that’s he’s considering forgiving almost all federal student loan debt before the Midterm elections. This would obviously have massive ramifications.

Prior to NIL, I understand it was common for many college players to take out student loans despite the fact that they were on scholarship simply so they could use the student loan refunds to buy clothes, cars, jewelry, etc.

I’m wondering how the process would work for folks like them who didn’t actually use the loans for school.

Thoughts?
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JD08

Sic gorgiamus allos subjectatos nunc
Maude
Joined
Dec 19, 2014
Messages
23,996
I don’t want this to devolve into a political argument, so I would like to hear your thoughts on this particular aspect of the idea and not debate the merits of the idea itself.

It was reported today that the President told Congress members at a meeting that’s he’s considering forgiving almost all federal student loan debt before the Midterm elections. This would obviously have massive ramifications.

Prior to NIL, I understand it was common for many college players to take out student loans despite the fact that they were on scholarship simply so they could use the student loan refunds to buy clothes, cars, jewelry, etc.

I’m wondering how the process would work for folks like them who didn’t actually use the loans for school.

Thoughts?
I don't think it matters. A student loan is a student loan regardless of how you end up using it. But forgiven debt is taxable income so that could get interesting.
 

Hegemon

Junior
Joined
Nov 3, 2011
Messages
4,950
Not a fan of this and I have quite the loan from UM.

There are two parts to this for me.

You have kids who are sold bullshit dreams and never given a reality check on degrees that have no jobs even close to the income range required to pay off the debt they are accepting.

However, they are ACCEPTING that debt and ignorance is not bliss. No one forces anyone to do this.

Federally subsidized loans have a fixed interest rate of 7.5%. If you are using auto pay it drops to 7.25%. You cannot declare bankruptcy on these loans.

That is your problem if you are taking out loans in excess of 100k. Why so high? The Department of Education is the 4th largest bank in America. That is crazy. Anyone pretending the arms race on college campuses isn't based around this is smoking crack rocks.

I have been fortunate enough to be able to utilize the no interest rate to wipe out a good portion of my loan. Frankly it is life changing. Biden did not discuss how much. I highly highly doubt he wipes it all out.

The national debt is my biggest national security risk. If I am expected to balance my budget I expect my government to as well. Wishful thinking no doubt.
 

Kjdcanefan

Sophomore
Premium
Joined
Jan 2, 2019
Messages
1,319
The GI bill only takes three years of service and I dont even think you have to complete the term if you get discharged generally. Three years that you can do online courses for free while in the service as well.
 

No_Fly_Zone

Rogue Gone Maude.
Maude
Joined
Dec 28, 2016
Messages
7,037
Not a fan of this and I have quite the loan from UM.

There are two parts to this for me.

You have kids who are sold bullshit dreams and never given a reality check on degrees that have no jobs even close to the income range required to pay off the debt they are accepting.

However, they are ACCEPTING that debt and ignorance is not bliss. No one forces anyone to do this.

Federally subsidized loans have a fixed interest rate of 7.5%. If you are using auto pay it drops to 7.25%. You cannot declare bankruptcy on these loans.

That is your problem if you are taking out loans in excess of 100k. Why so high? The Department of Education is the 4th largest bank in America. That is crazy. Anyone pretending the arms race on college campuses isn't based around this is smoking crack rocks.

I have been fortunate enough to be able to utilize the no interest rate to wipe out a good portion of my loan. Frankly it is life changing. Biden did not discuss how much. I highly highly doubt he wipes it all out.

The national debt is my biggest national security risk. If I am expected to balance my budget I expect my government to as well. Wishful thinking no doubt.

I'll start off with my loan situation for the sake of a full disclosure... After the compound interest kicked in, my student loans 6-months post-graduation were just about $90K (and I was fortunate get a full ride to UM and only took out loans for my graduate studies). A few months from the 10-year mark, and I'm down to about $2.5K left to pay (freezing the interest rate over the last couple years was helpful). So I do get offended when I see people "gaming" the student loan system or otherwise just acknowledging some future default. But I agree with everything you posted above.

I will also add that 30 years ago, when not attending college and still having a successful career was sold as a possibility in guidance counselor's offices across the country, today you won't hear it. HS funding depends on standardized test results and public high schools are ranked based on college admission percentages. So the high schools try their best to push the vast majority of students towards college (even the ones who would have been much better off learning a trade).

Simultaneously, the quality of our public school education system continues to take hits (in particular in states like Florida, but more or less throughout the country), combined with the additional supply of college graduates, results in employers upping their job requirements to a minimum 2-year or 4-year degree for jobs that 30 years ago only required a HS diploma.

This all makes a college degree appear that much more of a necessary step for HS students, increases the costs associated with obtaining a college degree, while also making the college degree marginally less valuable. (So more students think they need one, it costs more to get one, and the benefit derived from it is less).

The result is a ton of student loan debt.

For future generations... Increase the quality of public education K-12. Push trade schools and reputable technical institutions to marginal HS students (or even the smart kids that just want to work, frankly). Regulate on some of these BS unaccredited colleges and fly-by-night technical schools and hold them financially accountable. And provide meaningful opportunities for loan forgiveness in exchange for public service/work (the current system needs a serious overhaul).

For the current situation... I don't have a clue. It's totally FUBAR.
 

dycane

Senior
Banned
Joined
Dec 1, 2011
Messages
4,920
There are a lot of people who sacrificed to pay their student loans off or worked and attended part time to avoid them entirely. If you want to see political suicide, give those people the middle finger by forgiving student loan debt.
This is to buy young votes. They don’t think it’s political suicide. Quite the opposite in their minds.
 

407cane

All-ACC
Joined
Jan 29, 2013
Messages
8,874
I don’t think it would impact athletics very much at all.


I’m avidly against forgiveness unless congress also decides to stop issuing new federally guaranteed loans going forward

It’s so immoral to say students got screwed and to forgive it all and then allow students to continue to fall into the same trap.

Eliminate student loans or limit to $20-$30k at most with zero interest and college cost will plummet as a result
 

Tad Footeball

1996 Interim Big East Conference Commissioner
Joined
Feb 6, 2014
Messages
16,721
Welllll we kinda quickly established that the loans to former athletes would most likely be forgiven too and these things are obviously not fair to those that actually did bust their ass/are busting their ass to pay the loans back.

That said, life isn't fair either. There are always the last people to get f*cked before things change. What about the last dudes to get major jail time for weed convictions just before like half this country decided it was no big deal any longer and former "tough-on-crime" politicians started investing in weed businesses?

I also stopped being extremely offended by this loan forgiveness notion when I saw a TON of the people that were/are offended by it either brazenly abusing the MASSIVE PPP "loan" program with essentially fraud during the pandemic and/or admitting when pressed that they personally didn't actually have any student loan debt.
 
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NC_Canes_11

All American
Joined
Jul 5, 2017
Messages
10,861
So the problem shouldn't be fixed because the generation before "suffered"? Got it
Has nothing to do with what generation suffered. The problem is forcing people who had nothing to do with a certain person taking out a loan, pay off that loan. And force everybody to also deal with the inflation that comes with it. That by no means “fixs” anything. It compounds the problem and forces everyone to suffer, instead of just the ones who signed the paper to get the loan.

I had $20k in loans and I’ve already cut it down to under $10k in a handful of years. Even if they did wipe mine out, im still not in favor of it.
 

Dumpster Kitty

Alpha cat
Joined
Jan 22, 2021
Messages
495
So the problem shouldn't be fixed because the generation before "suffered"? Got it
How exactly does forgiving loans solve the problem of people taking out student loans they can't afford or college tuition being too high? Wouldn't it make the problem worse if people expect their loans to be forgiven because people have been "relieved" of their burden in the past?

Say, where's the money coming from to "forgive" this debt?
 

AUcane

All-ACC
Premium
Joined
Nov 2, 2011
Messages
16,840
I don’t think it would impact athletics very much at all.


I’m avidly against forgiveness unless congress also decides to stop issuing new federally guaranteed loans going forward

It’s so immoral to say students got screwed and to forgive it all and then allow students to continue to fall into the same trap.

Eliminate student loans or limit to $20-$30k at most with zero interest and college cost will plummet as a result


This is part of the solution. Subsidizing college financing has killed education. Schools have taken advantage and have built up so much administrative glut that I don't know how we turn back from it. Tuition rates are increasing alarmingly fast and colleges keep building newer and better buildings and honestly, I don't see it stopping. Not sure what the solution is but cutting back govt subsidies is a start to force these colleges to make tough decisions,. Thought it would happen with Covid but colleges just dug their heels even more.
 
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No_Fly_Zone

Rogue Gone Maude.
Maude
Joined
Dec 28, 2016
Messages
7,037
This is to buy young votes. They don’t think it’s political suicide. Quite the opposite in their minds.

1. Doesn't he already have most of those votes?
2. Do they even show up to vote in midterm elections?
 

BoxingRobes

Junior
Joined
Aug 24, 2013
Messages
8,459
There are a lot of people who sacrificed to pay their student loans off or worked and attended part time to avoid them entirely. If you want to see political suicide, give those people the middle finger by forgiving student loan debt.
This is 100% a false narrative.

The reality is, there are trillions of dollars in student debt and it will never be paid back. You can keep sticking your d!ck in that tree, but the tree ain't cumming, Potato.
 

Dumpster Kitty

Alpha cat
Joined
Jan 22, 2021
Messages
495
This is 100% a false narrative.

The reality is, there are trillions of dollars in student debt and it will never be paid back. You can keep sticking your d!ck in that tree, but the tree ain't cumming, Potato.
Did I say there wasn't? Why is the solution to forgive the debt? How does that solve the problem and not just postpone it? Why not make student loan debt dischargeable through bankruptcy?

But no, let's give another handout. Genius.
 

BoxingRobes

Junior
Joined
Aug 24, 2013
Messages
8,459
However, they are ACCEPTING that debt and ignorance is not bliss. No one forces anyone to do this.
Forced...no.
Coerced...yes.

If this conversation was happening in the 1700s, someone would slap send on "NO ONE FORCED THESE INDENTURED SERVANTS TO DO THIS. THEY SIGNED THE PAPER ON THEIR OWN." as if that justifies life they had to live after because of the terms they signed off on. The lending in the 2000s was predatory.

Its no different than the housing crisis of the 2000s...just reckless giving under the guise of promised social mobility because the federal government allows them to do so with impunity. In any true capitalist marketplace, those institutions would have eaten d!cks after their failed business plan unfolded, similar to whats happening with student debt as a company like Freddie Mac or any other private loan institution that was handing out free money thinking they were going to get this insane amount of money back.

The bootstrap narrative on student loans is laughable. Thought we were over this...its an albatross on the economy for an entire generation.
 
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