Department of Ed to cancel 150 million in student loans

[dynamicvb]

This really only affects a small number of people who attended schools that closed, but it's a good first step.

https://www.nbcnews.com/news/us-news/dept-education-cancel-150-million-student-loan-debt-n947821

[marty56]

Again the taxpayers have to eat the cost of other people's mistakes.

How many members in this forum would have loved to have their CC debt, mortage, or car loan forgiven if the orginal creditor went out of business?

[trusty]

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@marty56 wrote:

Again the taxpayers have to eat the cost of other people's mistakes.

How many members in this forum would have loved to have their CC debt, mortage, or car loan forgiven if the orginal creditor went out of business?

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Many of us have long since figured out how to "fix" these types of situations on our own... with the help of other like minded individuals.

It's a good thing, too... seeing as how keen some public servants are to help.

[Anonymous]

Your taxes have already been paying for all those defaulted loans! How is this bad for tax payers? This is about putting the value of consumer above that of the institution.

[Anonymous]

This is interesting.  Yet, Insurance Prices seem to rise and our stocks are falling.  Society can only be sucked dry for so long before it collapses.  This being said, forgiving this debt is pathetic because it doesn't forgive equally...

[marty56]

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@Anonymous wrote:
Your taxes have already been paying for all those defaulted loans! How is this bad for tax payers? This is about putting the value of consumer above that of the institution.

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The interest on the loans is used to pay for other things and or other loans that would have to be made up from somewhere else.

[Anonymous]

Uncle Sam pays 3d parties money to collect on all those defulted loans. The cost to do so is more than what is recovered. Thus costing taxpayers money. There is no interest collected if the loans are not being paid.

[Anonymous]

Imo isn't that the government loans out the money, it's that they take zero responsibility as lenders afterwards. If they were more hands on with the servicers and holding them accountable as well as providing clear guidelines, I believe they could collect a lot more in these loans. It benefits the servicer and collection agencies to mislead or underserve the borrower leasing them to avoidable default.
The good thing is that due to recent legislation these forgiven loans will not be counted a taxable income. I'm hoping this will put pressure on schools, particularly for-profit institutions to perform.