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Dept of Education forgives...1,500 student loans amid federal lawsuit

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Anonymous
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Dept of Education forgives...1,500 student loans amid federal lawsuit

7 REPLIES 7
Anonymous
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Re: Dept of Education forgives...1,500 student loans amid federal lawsuit

Only because they were going to lose that lawsuit.

 

Now let's see if they can get it together on PSLF.

Message 2 of 8
Anonymous
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Re: Dept of Education forgives...1,500 student loans amid federal lawsuit

Haha! So the true. I think she's thought and could still "win" the way they did with the PSLF, but I bet that contempt of court was a big wakeup call. In general, the Dept of Education has gotten away with this type of indifference (at best) for decades.
It they don't take care of this now, once the first large group will be getting IDR forgiveness, it's going to get ugly
Message 3 of 8
Anonymous
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Re: Dept of Education forgives...1,500 student loans amid federal lawsuit

Agree 100%. People (myself included) took often lower paying public service jobs on the promise that if we paid 120 on time payments, our loans would be forgiven. That only about 1% have over ridiculous technicalities is insane - especially with the looming student loan crisis.
Message 4 of 8
Anonymous
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Re: Dept of Education forgives...1,500 student loans amid federal lawsuit

When I look at the stats for PSLF denials, and the rate of denials for the "solution" there is absolutely no doubt in my mind that it's a problem with the system, not the borrowers. And since Dept of Education essentially washes their hands of it after they give you the loan, they are allowing servicers to do harm against borrowers. What they did to people like you who made a sacrifice to serve our community is unforgivable imo. That they will be allowed to continue to do so despite all that coming to light...I just don't get it.
Message 5 of 8
Anonymous
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Re: Dept of Education forgives...1,500 student loans amid federal lawsuit

I don't want my student loan forgiven. I will pay the money I borrowed. 

 

But I don't understand how this stuff keeps happening. First it was mortgages, now it's a student loan bubble. Wreckless lending to people that don't understand what it might mean for them later who also mistakenly believe they have to have a degree to make good money.

 

That is just so not true.

Message 6 of 8
calyx
Super Contributor

Re: Dept of Education forgives...1,500 student loans amid federal lawsuit



It's not a simple "wreckless lending" or lack of regulation issue for student loans.


Education spending is markedly down across the board (public schools from kindergarten through college).  If education is not supported, then yes, the costs go up.   So lending is necessary for school.
In addition, during the recession, a lot of people couldn't find jobs or weren't "qualified enough" so many of us went to grad school (or undergrad) to try to better prospects.   It became a bit of a vicious cycle with a lot of moving parts.
In the sciences it got really rough, because yes - I actually do need an advanced education for what I do (or did, rather), but research and basic sciences jobs are pretty low paid, making repayment difficult.

I would love to see loan forgiveness for people.  I will probably pay mine off before anything like that happens, but I would still like to see it for others who could benefit.

And yes, I think there needs to be a better solution, unfortunately, I'm neither a policy maker nor someone who sees a good answer to the problem.

Happy practitioner of AZE7or8or9or10 | Team Finances > FICO
Message 7 of 8
Anonymous
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Re: Dept of Education forgives...1,500 student loans amid federal lawsuit

Student loans originally began as a way to keep us competitive with Russia. We allowed people to borrow money who wanted to study mathematics and some of the sciences like physics. 

 

Now it's ballooned to every subject under the sun and some disciplines are just absurd. If you are going to to go school, study something that you really need to go to school for. 

 

I'm talking specifically about allowing people to just stay in school borrowing with no end in sight. There are "professional students" out there. When you have people 100k-300k+ in debt getting in PhD in Quantum Sorcery or Philosophy, you are just tossing money into a fan you aren't getting that back. Very expensive courses to just sit around and debate David Hume and his ideas on human understanding. I guess those philosophers will be able to at least think deeply about being in debt and unemployed. 

 

When I was in school doing my thing there I borrowed a little, not much. I ended up paying cash for about every other class or so I took. Ended up not using school at all in my employment, so it was well I paid so much in cash and it's lingering fingerprint on my profile isn't too imposing.

Message 8 of 8
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