A sharply divided Supreme Court has ruled that the Biden administration overstepped its authority in trying to cancel or reduce student loan debts for millions of Americans.
Why does this make it harder for the poor to access higher education? A debt forgiveness will make current debtors less burdened but will probably make it more expensive for new applicants. Isn’t it the other way around?
Relieving debt for the poor would allow them to spend their money on other things, or save it. Best case scenario, they’re able to support their kids’ educations and help break the generational cycle of poverty.
I believe he’s referencing the decision on the Harvard affirmative action case, not the student debt relief decision. Supreme Court has been busy this week!
Honestly, this decision wouldn’t probably impact future college attendees. But, there are other changes coming to federal borrowing that likely will. Income based repayment is being restructured and it’s looking pretty good.
However, this will probably hurt the economy. A lot of people are about to hit repayment at a period of high inflation. It’s not a great economy. And, if a lot of people decide to ignore their student loan bills a la 2008 financial crisis, were in for a global economic doozy.
I assume the second graph is basing inflation on CPI as well and if I’m not mistaken that would mean dollars spent on mortgages are equivalent to dollars spent on rent.
I would argue that as home ownership goes down inflation would become more impactful as you do not build wealth with rent but can with a mortgage.
It will impact future college attendees insofar as being more poor impacts your chances of going to college. It won’t directly impact future college attendees, but there is a knock on effect which will to some extent.
Chances are loan forgiveness would push a conversation regarding tuition fees in general, and would ultimately make university free / affordable instead.
Well, around 20 states right now offer free community college if you’re a resident through first/last dollar programs. Meaning, they will cover the costs after any other financial aid. Other qualifications vary.
Some States schools offer debt relief if you hold a regional residency for X-years (usually 5) after graduation. So for example, if there’s an area of a State that needs more investment (like Upstate NY versus Downstate), these programs are designed to increase GDP and strengthen the talent pool.
Of course, you can get a tuition waiver in like half the states if you’re over 60. 🙄
I’m not saying any of this is ideal by any stretch if the imagination. Just saying there’s some headway here and there in terms of precedent for tuition-free college education.
Support for Biden’s student loan cancellation is for most a political calculation, where people who would be for more robust measures to make college affordable support it as a partial measure, a step in the right direction. A common right wing tactic is to stymie left wing political priorities to the point where asking questions like this seems reasonable, even though the asker is often being disingenuous and would be against any affordable college plan that increased government spending or in which the government played an otherwise larger role. If this commenter wasn’t being disingenuous, they had the unfortunate plight of absorbing a lot of built-up frustration over this tactic haha
Why does this make it harder for the poor to access higher education? A debt forgiveness will make current debtors less burdened but will probably make it more expensive for new applicants. Isn’t it the other way around?
Relieving debt for the poor would allow them to spend their money on other things, or save it. Best case scenario, they’re able to support their kids’ educations and help break the generational cycle of poverty.
I believe he’s referencing the decision on the Harvard affirmative action case, not the student debt relief decision. Supreme Court has been busy this week!
Honestly, this decision wouldn’t probably impact future college attendees. But, there are other changes coming to federal borrowing that likely will. Income based repayment is being restructured and it’s looking pretty good.
However, this will probably hurt the economy. A lot of people are about to hit repayment at a period of high inflation. It’s not a great economy. And, if a lot of people decide to ignore their student loan bills a la 2008 financial crisis, were in for a global economic doozy.
The US has historically low unemployment, but real wages have stagnated for more than 50 years.
The economy is actually pretty great – for those at the top. Not so much for those doing the real work:
I assume the second graph is basing inflation on CPI as well and if I’m not mistaken that would mean dollars spent on mortgages are equivalent to dollars spent on rent.
I would argue that as home ownership goes down inflation would become more impactful as you do not build wealth with rent but can with a mortgage.
It will impact future college attendees insofar as being more poor impacts your chances of going to college. It won’t directly impact future college attendees, but there is a knock on effect which will to some extent.
Chances are loan forgiveness would push a conversation regarding tuition fees in general, and would ultimately make university free / affordable instead.
Maybe.
There is 0 chance that would happen with our current political climate.
Well, around 20 states right now offer free community college if you’re a resident through first/last dollar programs. Meaning, they will cover the costs after any other financial aid. Other qualifications vary.
Some States schools offer debt relief if you hold a regional residency for X-years (usually 5) after graduation. So for example, if there’s an area of a State that needs more investment (like Upstate NY versus Downstate), these programs are designed to increase GDP and strengthen the talent pool.
Of course, you can get a tuition waiver in like half the states if you’re over 60. 🙄
I’m not saying any of this is ideal by any stretch if the imagination. Just saying there’s some headway here and there in terms of precedent for tuition-free college education.
Can’t believe this was down voted for asking a legitimate question related to the topic. This isn’t reddit.
Support for Biden’s student loan cancellation is for most a political calculation, where people who would be for more robust measures to make college affordable support it as a partial measure, a step in the right direction. A common right wing tactic is to stymie left wing political priorities to the point where asking questions like this seems reasonable, even though the asker is often being disingenuous and would be against any affordable college plan that increased government spending or in which the government played an otherwise larger role. If this commenter wasn’t being disingenuous, they had the unfortunate plight of absorbing a lot of built-up frustration over this tactic haha