President Joe Biden on Tuesday launched a promotional blitz for his new program that helps student loan borrowers repay their debt, just weeks before millions of Americans are set to receive a loan bill for the first time since the beginning of the pandemic.
The Biden administration is mobilizing to convince borrowers across the country to sign up for the new income-driven repayment program — dubbed the “SAVE plan” — which caps interest accrual and lowers the monthly payment amount for many borrowers.
“It’s the most affordable student loan plan ever,” Biden said in a video released by the White House on Tuesday, describing the program as a major reform to a student loan system “that hurt borrowers for much too long.”
“If you’re eligible for the SAVE Plan, sign up now so you can lower your monthly payments in advance of payments resuming this fall,” Biden said.
This is (i) welfare for the well-to-do, (ii) great incentive for colleges to keep pushing up their tuition fees, and (iii) fiscal stimulus during a critical juncture in the fight to tame inflation. Let it not be said that the Republican Party has a monopoly on bad policy ideas.
Ah yes, student loans are all the rage down at the country club. Won’t you be a good chap and bring me my balance statement, of which I will light my Cuban with.
People with college degrees, on average, make a million more lifetime dollars than people without. This goes up further with post-graduate education.
Student loan forgiveness should always irst be targeted at college dropouts. Tiering it based on income is not. AS good but is a close 2nd
I disagree with you, but your position has some sentiments I can understand. So instead of getting angry, downvoting, and throwing a fit, I am just going to respond calmly:
If you look at the actual details of the plan it’s pretty reasonable.
Lowered interest rates for everyone who are making their payments.
Higher threshold for low income earners to get some forgiveness. This counters your “well-to-do” argument.
I think he was referring to the idea of forgiveness, not this plan.
Well this plan is the topic. Or so I thought.
Explain how you came up with point one. The well to do will not qualify or benefit from this at all. Its based on income and is definitely skewed to benefit well off people at all.
Not sure how you decided this seeing as this benefits people at the poverty line and not the wealthy. Sure, anything can encourage schools to push up tuition prices, but there’s literally a bill in play right now to cap tuition prices. It’s not loan forgiveness, but it’s far better than nothing. Also, the financial impact is a pittance. It’s not the 50k per borrower floated in 2020. It’s not even the 10k the scotus shot down.
I’m well to do now? This is for me and I consider not eating for 48 hours at a time because the price of food rn is bonkers to be a solid financial decision.
You’re wrong about (i) and (iii) - seriously who does that? - but as someone whose kids will be starting college in a few years I agree with (ii).
We need to find a way to get everyone who is capable a college education without needing loans. Apart from my own personal interests, there is a huge amount of brain power wasted by not having education freely available.
I’m confused. Are you saying this is not welfare for the well to do, and is not a form of stimulus?
Welfare is not inherently bad.
Not everyone who has student loans is well to do.
This doesn’t come into effect until next year, at which time inflation should be under control.
That’s fair.