I’m not on Twitter so here is my opinion if I’m only given the three choices: don’t forgive student loans. If I borrow money, I pay it back, even if I’ve made a bad bargain. Incan only get it back from whomever I paid.
If we allow the federal government to work properly, there would be oversight over things like colleges (obviously, there are not). In those case, and the one I e read about regarding “fake colleges,” perhaps the government could step in. I wish the politicians that receive donations from these fake schools would at least have to pay back those donations.
I also feel for the many students and families that took out loans, went to school, graduated and paid them back. What happens to the ? Do their tax dollars help cover the costs of the forgiven loans? I sure don’t want my tax dollars to pay for these mistakes.
My preference is not to forgive loans but if they decide to do it and suffer the political consequences from loan repayers and all the people who never borrowed or defaulted but now have to pay taxes to support those who did. That’s the only reason the Democrats haven’t really forced Biden to do this because they are worried that the blowback will be worse than the vote buying that this is really aimed at.
When I was in college. Loan rates were really low (2-4%)! You could take one out and actually pay it back. The rates on college loans now are up to 14%, and tuition have quadrupled since the 1970’s. My suggestion is to drop the loan rate down to 2%.
No question that the schools should gave some skin in the game and potentially be on the hook for defaults by their graduates. Federal rates are much lower than what you suggest and my guess is that when you borrowed money you weren’t buying expensive Starbucks coffee and driving a late model car with your easy to obtain loan proceeds?
My nephew enlisted in the army for four years. He took courses while in the army. When he got out he got certified as an EMT, signed on with the national guard, began doing research and paid for his undergrad degree. He is now using his military benefits for graduate school and is a paid research assistant while he works on his masters and doctorate.
A lot of people follow this same path. He grew up with no silver spoon so he forged his own path.
Why does every kid think they should go right to college and why do parents trash the idea of a gap year? Kids need to grow up! I sure wasn’t at 18.
I'm not a twitter follower. I agree with comments below, the federal government should not forgive student debt. It would be ok to make it interest free or write it off as part of bankruptcy but if you take out loans, then you're obligated to pay them back. What message does it send to the students and parents that worked hard to fulfill that obligation?
I’ve read numerous articles on parents and students going bankrupt on college loan repayments. My friends who have college loans just live with the fact that they’ll never own a house and will be paying off their loans for the rest of their lives because the jobs they thought they’d get either weren’t there, there’s a glut on the market of people in their field or the jobs just don’t pay enough, even though they require college education.
I wouldn't dispute the fact that the cost of a college education is ridiculous but isn't there some responsibility on the borrower when they take out the loan? Why not forgive credit card debt as well?
I can see your point Bruce, but an education isn’t like buying a car. It’s something that also benefits the nation because you can now pay taxes and boost the economy. Why not do what we did in the 70’s, 2% rate on educational loans.
Excuse the rant - Of course, 1) $40K/ semester for an education that’s required is absurd, not to mention over inflated salaries for college presidents and sports coaches,
2) Million dollar CEO’s of corporations not paying workers enough to live on and
One of the big problems is most debt is dischargeable by bankruptcy at some point. Yet college debt is not. When I went to the University of Maine as an out-of-state student my tuition went up 25% every semester, and the value of services didn't increase. Financial literacy courses should be mandatory to graduate high school. I agree the government assuming debt is a bad idea. But bankruptcy should be an option.
Bankruptcy has consequences for at least 7 years. It takes a while to get past that. Think twice and consider the future before making impetuous decisions.
I don't Tweet (or sing). My option D. "None of the above". A loan (house, car, college, or credit card) is a contract and default has consequences. The hazard of ignoring the moral hazard of accountability is the precedent for future unintended consequences of personal and institutional (and national) irresponsible decisions, behaviors, and actions devoid of honest intent and accountability. Pay your debt or suffer the consequences.
I appreciate Tom’s comments on having CP. my brother had it, but to such an extent that his brain was badly affected. I’m thrilled that Tom’s seems only physical and appreciate the work he does for this newsletter. I think about the stoic idea of “momento mori “ where life is precious so live truly every day. Tom is the epitome of this philosophy. I appreciate his example for life.
This is why I subscribe. I'll also stroke the opinion that a debt is a debt (look up the definition). I don't wish to welch on anything I owe. I don't wish that anything owed be not paid back.
Loved the interview! I had a friend who suffered from CFS, fibromyalgia, and epilepsy, for these reasons, had his career as an electrician cut short. He used to say that his illnesses gave him a gift, the gift of time. As he was too unpredictable to be gainfully employed, he could spend more time enjoying his life, doing those things he enjoyed at his own pace. This man would enjoy bringing jokes he printed out to our coffee round tables that I attended religiously as I needed the social interaction being a work from home woman before it was more in vogue. I miss those coffee round tables. My work schedule now does not really permit such meetings. Work does take away from the joy of living at times, doesn't it?
Bill, I am not sure how you pick the people that work for you, but between Tom and Kate, you are my “hiring idol!”
Tom, your attitude is incredible. I am sure you have your share of down days like everyone, but to each day deal with CP and do an amazing job of helping Bill......well, it’s truly incredible. I hope that you spend time with others who have dealt with CP. you would be a great inspiration. I hope you get to your 10,000 steps or whatever number is fulfilling for you. Thanks for being on Bill’s team.
There could be a lot to assist borrowers with repayment that doesn't include cancelling all debt. First and foremost, educational loans (for students and parents) should be at a very low interest rate (2-3%). This rate should be applied to existing loans as well. Second, outstanding student loans should be re-administered. These should be calculated as if the original loan had been written with a 2-3% interest rate. How much of the principal would have been paid if the interest rate was low from the onset? Recalculate the balance and set a new payment plan. Some loans would be discharged in this way as those borrowers have been paying interest-only. Third, make it easier to consolidate multiple loans (including parent loans), and make deferment rules clearer and easier to meet.
There's a lot of anger at the thought of giving borrowers taxpayer money in debt forgiveness. Personally, I'd rather see my tax dollars go for that than the military and militarized police, but that's probably just the liberal in me. Despite working, student teaching, and scholarships, I graduated with a hefty debt, added to when my parents signed over their PLUS loans to me. I defaulted on two loans while doing a low-paying internship (basically a job requirement for my field). I managed to pay everything off in 12 years. That being said, I want students now to have things better than I did, with more access to education and funding, not less.
Agree, the exorbitant cost of higher education today (both public and private colleges) is on a self destructive course and largely to blame for the current predicament so many graduates find themselves in with onerous debt burden. Policy and structural reforms are desperately needed in the complacency and inefficiecies of administrative top heavy college staffing and operations that mostly drive up college costs nowadays. These "profit-centers" of legal nonprofits have gotten a free ride for decades at the expense of many working parents, many working students, and the American taxpayer. How about "free tuition for all" at "business enterprise" tution rates, not the artificially inflated "list prices" that colleges use for scamming the students, parents, and tax payers? And I'm not even a liberal!
I agree with you Jim. Luckily in NY we have trade schools and state and community colleges that are less expensive than the private universities. If you live in NY, you can go that route. But the private universities have more specialized coursework for those seeking jobs in those areas.
My specialization was only in 3 universities in the country. Two wouldn’t take me because they wouldn’t accept night school credits from Villanova ! Hard to believe. Then I took two years off and still had to work my way through. Couldn’t get into the military due to bad eyesight. The military isn’t the answer for everyone.
Tom, it was very educational reading about your story as I have been blessed not to learn of these thing firsthand, life is largely a matter of how we choose to view it and I'm thankful that I was required to shovel snow as it helped to develop the grit that you learned from everyday life. We each live very different lives and the differences are less important than what we takeaway. We all have a lot to be grateful for but so many look at what we don't have failing to see the many blessings that were given to us.
not on twitter but disagree with blanket forgiveness of loans. My nephew had a student loan that was used to go to Europe after graduation and while paid back forgiveness would spark a rash of borrowing for extraneous item in the hope of forgiveness.
Thank you Tom for sharing your story. My Aunt Lynne had CP and she was one of the most inspirational people in my life. I appreciate you providing so much candor with your inspiration. We are blessed to have this opportunity of a bit of insight in your life. Your positivity and your frankness is both inspirational and refreshing. Thank you for giving us your time.
Read Spiritual Healing In A Scientific Age by Peel.
I’m not on Twitter so here is my opinion if I’m only given the three choices: don’t forgive student loans. If I borrow money, I pay it back, even if I’ve made a bad bargain. Incan only get it back from whomever I paid.
If we allow the federal government to work properly, there would be oversight over things like colleges (obviously, there are not). In those case, and the one I e read about regarding “fake colleges,” perhaps the government could step in. I wish the politicians that receive donations from these fake schools would at least have to pay back those donations.
I also feel for the many students and families that took out loans, went to school, graduated and paid them back. What happens to the ? Do their tax dollars help cover the costs of the forgiven loans? I sure don’t want my tax dollars to pay for these mistakes.
To encompass so much in a brief article - thank you
I am not a Twitterite.
My preference is not to forgive loans but if they decide to do it and suffer the political consequences from loan repayers and all the people who never borrowed or defaulted but now have to pay taxes to support those who did. That’s the only reason the Democrats haven’t really forced Biden to do this because they are worried that the blowback will be worse than the vote buying that this is really aimed at.
When I was in college. Loan rates were really low (2-4%)! You could take one out and actually pay it back. The rates on college loans now are up to 14%, and tuition have quadrupled since the 1970’s. My suggestion is to drop the loan rate down to 2%.
No question that the schools should gave some skin in the game and potentially be on the hook for defaults by their graduates. Federal rates are much lower than what you suggest and my guess is that when you borrowed money you weren’t buying expensive Starbucks coffee and driving a late model car with your easy to obtain loan proceeds?
Great idea!
If you can’t pay don’t play.
My nephew enlisted in the army for four years. He took courses while in the army. When he got out he got certified as an EMT, signed on with the national guard, began doing research and paid for his undergrad degree. He is now using his military benefits for graduate school and is a paid research assistant while he works on his masters and doctorate.
A lot of people follow this same path. He grew up with no silver spoon so he forged his own path.
Why does every kid think they should go right to college and why do parents trash the idea of a gap year? Kids need to grow up! I sure wasn’t at 18.
Congratulations to your nephew! Raised with values and integrity!
I'm not a twitter follower. I agree with comments below, the federal government should not forgive student debt. It would be ok to make it interest free or write it off as part of bankruptcy but if you take out loans, then you're obligated to pay them back. What message does it send to the students and parents that worked hard to fulfill that obligation?
I’ve read numerous articles on parents and students going bankrupt on college loan repayments. My friends who have college loans just live with the fact that they’ll never own a house and will be paying off their loans for the rest of their lives because the jobs they thought they’d get either weren’t there, there’s a glut on the market of people in their field or the jobs just don’t pay enough, even though they require college education.
I wouldn't dispute the fact that the cost of a college education is ridiculous but isn't there some responsibility on the borrower when they take out the loan? Why not forgive credit card debt as well?
I can see your point Bruce, but an education isn’t like buying a car. It’s something that also benefits the nation because you can now pay taxes and boost the economy. Why not do what we did in the 70’s, 2% rate on educational loans.
Excuse the rant - Of course, 1) $40K/ semester for an education that’s required is absurd, not to mention over inflated salaries for college presidents and sports coaches,
2) Million dollar CEO’s of corporations not paying workers enough to live on and
3) health insurance costs
are depriving the country of thriving.
I’m out buying it. Sorry. Overreach is overreach. If you cannot pay the piper you shouldn’t sign on the dotted line.
One of the big problems is most debt is dischargeable by bankruptcy at some point. Yet college debt is not. When I went to the University of Maine as an out-of-state student my tuition went up 25% every semester, and the value of services didn't increase. Financial literacy courses should be mandatory to graduate high school. I agree the government assuming debt is a bad idea. But bankruptcy should be an option.
Bankruptcy has consequences for at least 7 years. It takes a while to get past that. Think twice and consider the future before making impetuous decisions.
I don't Tweet (or sing). My option D. "None of the above". A loan (house, car, college, or credit card) is a contract and default has consequences. The hazard of ignoring the moral hazard of accountability is the precedent for future unintended consequences of personal and institutional (and national) irresponsible decisions, behaviors, and actions devoid of honest intent and accountability. Pay your debt or suffer the consequences.
I appreciate Tom’s comments on having CP. my brother had it, but to such an extent that his brain was badly affected. I’m thrilled that Tom’s seems only physical and appreciate the work he does for this newsletter. I think about the stoic idea of “momento mori “ where life is precious so live truly every day. Tom is the epitome of this philosophy. I appreciate his example for life.
This is why I subscribe. I'll also stroke the opinion that a debt is a debt (look up the definition). I don't wish to welch on anything I owe. I don't wish that anything owed be not paid back.
Loved the interview! I had a friend who suffered from CFS, fibromyalgia, and epilepsy, for these reasons, had his career as an electrician cut short. He used to say that his illnesses gave him a gift, the gift of time. As he was too unpredictable to be gainfully employed, he could spend more time enjoying his life, doing those things he enjoyed at his own pace. This man would enjoy bringing jokes he printed out to our coffee round tables that I attended religiously as I needed the social interaction being a work from home woman before it was more in vogue. I miss those coffee round tables. My work schedule now does not really permit such meetings. Work does take away from the joy of living at times, doesn't it?
Thank you for sharing Tom's story-he is true inspiration!!!
Tom,
I love everything about this article.
Your words are so authentic and vulnerable. What an inspiration! And another important life lesson from Understandably!
I am very grateful for this share, Tom and for the interview, Bill.
Thank you!
Adam
Thanks Adam!
Bill, I am not sure how you pick the people that work for you, but between Tom and Kate, you are my “hiring idol!”
Tom, your attitude is incredible. I am sure you have your share of down days like everyone, but to each day deal with CP and do an amazing job of helping Bill......well, it’s truly incredible. I hope that you spend time with others who have dealt with CP. you would be a great inspiration. I hope you get to your 10,000 steps or whatever number is fulfilling for you. Thanks for being on Bill’s team.
There could be a lot to assist borrowers with repayment that doesn't include cancelling all debt. First and foremost, educational loans (for students and parents) should be at a very low interest rate (2-3%). This rate should be applied to existing loans as well. Second, outstanding student loans should be re-administered. These should be calculated as if the original loan had been written with a 2-3% interest rate. How much of the principal would have been paid if the interest rate was low from the onset? Recalculate the balance and set a new payment plan. Some loans would be discharged in this way as those borrowers have been paying interest-only. Third, make it easier to consolidate multiple loans (including parent loans), and make deferment rules clearer and easier to meet.
There's a lot of anger at the thought of giving borrowers taxpayer money in debt forgiveness. Personally, I'd rather see my tax dollars go for that than the military and militarized police, but that's probably just the liberal in me. Despite working, student teaching, and scholarships, I graduated with a hefty debt, added to when my parents signed over their PLUS loans to me. I defaulted on two loans while doing a low-paying internship (basically a job requirement for my field). I managed to pay everything off in 12 years. That being said, I want students now to have things better than I did, with more access to education and funding, not less.
All of this makes sense to me.
Agree, the exorbitant cost of higher education today (both public and private colleges) is on a self destructive course and largely to blame for the current predicament so many graduates find themselves in with onerous debt burden. Policy and structural reforms are desperately needed in the complacency and inefficiecies of administrative top heavy college staffing and operations that mostly drive up college costs nowadays. These "profit-centers" of legal nonprofits have gotten a free ride for decades at the expense of many working parents, many working students, and the American taxpayer. How about "free tuition for all" at "business enterprise" tution rates, not the artificially inflated "list prices" that colleges use for scamming the students, parents, and tax payers? And I'm not even a liberal!
I agree with you Jim. Luckily in NY we have trade schools and state and community colleges that are less expensive than the private universities. If you live in NY, you can go that route. But the private universities have more specialized coursework for those seeking jobs in those areas.
My specialization was only in 3 universities in the country. Two wouldn’t take me because they wouldn’t accept night school credits from Villanova ! Hard to believe. Then I took two years off and still had to work my way through. Couldn’t get into the military due to bad eyesight. The military isn’t the answer for everyone.
I’m pretty liberal but a debt is a debt.
Tom, it was very educational reading about your story as I have been blessed not to learn of these thing firsthand, life is largely a matter of how we choose to view it and I'm thankful that I was required to shovel snow as it helped to develop the grit that you learned from everyday life. We each live very different lives and the differences are less important than what we takeaway. We all have a lot to be grateful for but so many look at what we don't have failing to see the many blessings that were given to us.
not on twitter but disagree with blanket forgiveness of loans. My nephew had a student loan that was used to go to Europe after graduation and while paid back forgiveness would spark a rash of borrowing for extraneous item in the hope of forgiveness.
Thank you Tom for sharing your story. My Aunt Lynne had CP and she was one of the most inspirational people in my life. I appreciate you providing so much candor with your inspiration. We are blessed to have this opportunity of a bit of insight in your life. Your positivity and your frankness is both inspirational and refreshing. Thank you for giving us your time.