13 minutes ago, 20dawk4life said:

So you agree they shouldn’t cancel the student loans? 

Correct. I agree with Vikas that the federal government should be out of the student loan business. To achieve that goal we are going to have to think of something to get these loans paid off. I don’t think it’s unfair or a moral hazard to make someone who borrowed 50k to pay back 50k. Making them pay 150k-200k on the loan is excessive. It’s a money making scam. Let people pay back what they borrowed and let’s stop this nonsense of federal student loans. 

10 hours ago, Seventy_Yard_FG said:

You’re right I rarely complain when I’m getting shaken down for a few bucks, but when someone comes along asking for 12% of my paycheck yeah I complain about that loudly

Is it your loans you are talking about being 12 percent of your paycheck?

19 minutes ago, Boogyman said:

Is it your loans you are talking about being 12 percent of your paycheck?

12 percent of my pay check goes to social security which I will never get to see

19 minutes ago, Seventy_Yard_FG said:

12 percent of my pay check goes to social security which I will never get to see

Terminal illness?

2 hours ago, Gannan said:

Usually when you take out a loan, the terms of the loan are established before you borrow the money, not after.

 

2 hours ago, 20dawk4life said:

So you agree they shouldn’t cancel the student loans? 

No, not like that!  

2 hours ago, Gannan said:

Correct. I agree with Vikas that the federal government should be out of the student loan business. To achieve that goal we are going to have to think of something to get these loans paid off. I don’t think it’s unfair or a moral hazard to make someone who borrowed 50k to pay back 50k. Making them pay 150k-200k on the loan is excessive. It’s a money making scam. Let people pay back what they borrowed and let’s stop this nonsense of federal student loans. 

They borrowed money. That loan had an interest rate attached to it. Canceling the time value of money/risk premium is absolutely unfair to the lender, which in this case, is the American tax payer.

Again, you wouldn't, with your own money, give a random student a zero percent interest rate and you sure as hell would think that it was unfair if some politician stepped in and canceled a loan that you owned simply because their principle and interest payments added up to the original loan amount.

This is madness. Complete madness and the absolute definition of moral hazard.

9 hours ago, TEW said:

They borrowed money. That loan had an interest rate attached to it. Canceling the time value of money/risk premium is absolutely unfair to the lender, which in this case, is the American tax payer.

Again, you wouldn't, with your own money, give a random student a zero percent interest rate and you sure as hell would think that it was unfair if some politician stepped in and canceled a loan that you owned simply because their principle and interest payments added up to the original loan amount.

This is madness. Complete madness and the absolute definition of moral hazard.

I loaned my bro 2 grand and after two years I settled for him paying for dinner at Arby’s one night.  That’s just the way it goes with loans sometimes, and it’s not just because he’s my brother.  You get into them with good intentions but circumstances change and you end up taking what you can get.  All I can really do is not lend my brother money again

the only difference with government is they’re idiot enough to take the haircut and still continue lending 

1 hour ago, Seventy_Yard_FG said:

I loaned my bro 2 grand and after two years I settled for him paying for dinner at Arby’s one night.  That’s just the way it goes with loans sometimes, and it’s not just because he’s my brother.  You get into them with good intentions but circumstances change and you end up taking what you can get.  All I can really do is not lend my brother money again

the only difference with government is they’re idiot enough to take the haircut and still continue lending 

Yeah, it is just because he’s your brother. You wouldn’t go forgiving debt owned in your retirement portfolio now would you?

11 hours ago, TEW said:

They borrowed money. That loan had an interest rate attached to it. Canceling the time value of money/risk premium is absolutely unfair to the lender, which in this case, is the American tax payer.

Again, you wouldn't, with your own money, give a random student a zero percent interest rate and you sure as hell would think that it was unfair if some politician stepped in and canceled a loan that you owned simply because their principle and interest payments added up to the original loan amount.

This is madness. Complete madness and the absolute definition of moral hazard.

Good luck on getting 200k back from a kid working as a greeter at wallmart. Even the mafia knows getting some money from the shy is better than getting no money. 

Just now, Gannan said:

Good luck on getting 200k back from a kid working as a greeter at wallmart. Even the mafia knows getting some money from the shy is better than getting no money. 

The US government will literally garnish their wages directly from Walmart. Call it an expensive life lesson they can pass down to their children: don’t borrow money to work at Walmart.

1 minute ago, TEW said:

The US government will literally garnish their wages directly from Walmart. 

President Biden wouldn't do that!

2 hours ago, TEW said:

Yeah, it is just because he’s your brother. You wouldn’t go forgiving debt owned in your retirement portfolio now would you?

No what I’d figure would happen is my fiduciary would do what he can to squeeze every last drop out of a bad investment, but even then sometimes you get stuck with a hair cut

 

if you loan a business money, at some point you realize you’ll never get your money back so you assess the situation, maybe you cut back a bit and maybe that returns the business to sustainability and that’s the best way to make sure you walk away maybe at least 90 cents on the dollar 

with a student loan it’s a bit different but when I imagine you start to see the cost of collecting the debt hits a certain point you renegotiate and see if you can get at least some of your money back

I don't have student debt, but I could get behind forgiving a portion of it, as long as it only applies to Biden voters.  I think we can all agree that Trump voters should be saddled with their poor life choices much like we've all been saddled with their poor choice for the last 4 years.

10 minutes ago, VanHammersly said:

I don't have student debt, but I could get behind forgiving a portion of it, as long as it only applies to Biden voters.  I think we can all agree that Trump voters should be saddled with their poor life choices much like we've all been saddled with their poor choice for the last 4 years.

I would support a form of reparations where Trump voters had to pay off student loans for everyone else for what they have put the country through for the last 4 years. Seems fair. 

On 11/15/2020 at 5:12 PM, Smokesdawg said:

Honestly, right now i have enough money from an estate coming my way to pay off my student loans.... i'd like to do that but i also don't want to be pissed off if, within 6 months, part or all of the debt is forgiven. 

I probably just spent $80-90k to pay off student loans from money that came to me the same way back in March. 

14 hours ago, TEW said:

They borrowed money. That loan had an interest rate attached to it. Canceling the time value of money/risk premium is absolutely unfair to the lender, which in this case, is the American tax payer.

Again, you wouldn't, with your own money, give a random student a zero percent interest rate and you sure as hell would think that it was unfair if some politician stepped in and canceled a loan that you owned simply because their principle and interest payments added up to the original loan amount.

This is madness. Complete madness and the absolute definition of moral hazard.

Time value of money escapes the vast majority of Americans.

There’s no law that says the time value of money is necessarily greater than zero

21 minutes ago, Seventy_Yard_FG said:

There’s no law that says the time value of money is necessarily greater than zero

Just the law of averages.

1 hour ago, Agent23 said:

I probably just spent $80-90k to pay off student loans from money that came to me the same way back in March. 

i'm waiting on the student loans... i'm going to use some of that money to pay off our HELOC first.  

 

On 11/15/2020 at 4:41 PM, EaglesRocker97 said:

Coastal elites aren't the ones with massive student debt, so how would it win them over? And they already vote Democrat anyway.

Also I looked up the stats and the bottom 20% of the social economic ladder has 9% of the student loan debt, while the top 20% has 26% of it, so yes the coastal elites are the ones with massive student debt. 
 

Most of the debt out there is held by graduate students. Or, you know, the people going into higher paying jobs that will be better able to pay them back. 

On 11/15/2020 at 2:18 PM, Seventy_Yard_FG said:

So I have one class left on my MBA.  I could either pay cash or take out a loan.  If I take out a loan I could take only enough to pay for the class, or I could take up to an extra 5 grand or so.

Should I just pay cash or assume they will cancel my debt before I have to pay it off?  Should I wager taking the full amount and assume that’s just free money?

 

On 11/17/2020 at 12:27 PM, Seventy_Yard_FG said:

There’s no law that says the time value of money is necessarily greater than zero

The entire global financial system is literally built on the premise that US treasuries are the risk free asset. Everything else’s value is derived from this base . The yield of this debt goes up with time to reflect the opportunity cost of not having that cash on hand.

Right now, even in these hyper dovish times, the 30 day is yielding 9bps. So unless you think college students borrowing money with a duration measured in years has less risk than the US government — which can literally print money to pay back its debt — borrowing money for 30 days, then yeah,  there kind of is a law that says it’s greater than zero.

1 hour ago, TEW said:

The entire global financial system is literally built on the premise that US treasuries are the risk free asset. Everything else’s value is derived from this base . The yield of this debt goes up with time to reflect the opportunity cost of not having that cash on hand.

Right now, even in these hyper dovish times, the 30 day is yielding 9bps. So unless you think college students borrowing money with a duration measured in years has less risk than the US government, which can literally print money to pay back its debt, borrowing money for 30 days, then yeah — there kind of is a law that says it’s greater than zero.

I'd subscribe to the let me take all the risk and loan you money for your gender studies degree for 15 years with no monetary benefit for me society. 

 

 

 

 

But not really.

On 11/17/2020 at 11:44 AM, Gannan said:

I would support a form of reparations where Trump voters had to pay off student loans for everyone else for what they have put the country through for the last 4 years. Seems fair. 

Pay off tour own loans, commie 💴