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Post by jwk on Apr 9, 2024 12:14:38 GMT -5
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Post by moosemike on Apr 9, 2024 13:43:43 GMT -5
Yeah thats pure garbage.
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Post by moosemike on Apr 9, 2024 13:44:37 GMT -5
More socialism
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Post by davet on Apr 9, 2024 13:47:13 GMT -5
My wife and I paid off my student loans years ago.....can I get my share???
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Post by dougl on Apr 9, 2024 14:26:50 GMT -5
You get what you vote for Dave..My wife and I paid ours and we just paid half of our daughters 40K debt.
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Post by rusty on Apr 9, 2024 14:40:44 GMT -5
A better move would be lowing the interest on students loans. And I would favor giving lower interest rates to those enrolled in professions and trades that are in high demand.
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Post by Loggy on Apr 9, 2024 14:49:47 GMT -5
Anyone that has any insight or experience to how large tranches of loans are transacted, serviced and brokered on the market wouldn't be too quick to judge Biden. In fact, would give him a thumbs-up!!
President Biden's plan to forgive select student loan debt for borrowers is actually a "win-win" scenario to taxpayers according to Daniel McKeever, assistant professor in the School of Management at Binghamton University, State University of New York.
"Many people don't realize that the federal government actually owns (not just guarantees) almost all student loan debt. On paper, these loans are currently worth about $1.5 trillion dollars. Joe Biden originally proposed to forgive loan balances totalling about $330 billion. So did American taxpayers just fork over $330 billion in new spending? And will we get clobbered with a new round of inflation as a result?
"Not at all. While the federal government's student loan portfolio might be worth a lot on paper, these loans are basically junk bonds, with default rates around 25% and no collateral to recover. The government's loan portfolio is a loser: it actually costs the government more to service these loans (especially among the worst-performing loans to borrowers who will simply never be able to repay them) than the government will ever collect in interest. Writing off the worst of these loans actually improves the federal government's fiscal outlook and saves taxpayers money. This isn't $330 billion in new spending, it's bottomline a small spending cut.
“The student loans that this program eliminates were a lose-lose: the government slowly bled money on bad loans, and the borrowers were saddled with debt that most of them could never hope to repay. There was no reason to keep them on either party's books, and so wiping them off is a win-win.”
The real underlying problem is with the loan structures themselves going back way BEFORE BIDEN....in fact 1958(Pres Eisenhower) & with Stafford Loans originating in 1965. The problem is NOT Biden....in fact Biden made a wise economic decision that I'm sure wasn't his idea but advised by top level financial experts experienced in the bond portfolio market..
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Post by jwk on Apr 9, 2024 15:12:35 GMT -5
This is about buying votes nothing more nothing less.
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Post by Loggy on Apr 9, 2024 15:42:24 GMT -5
This is about buying votes nothing more nothing less. Nope. It’s about US Treasury cleaning its balance sheet of Junk Loans with ZERO collateral and a 25 percent default rate with astronomical servicing cost exceeding interest revenue. I’m sure Treasury officials are relieved with cutting the dragging anchor. All these loans should have originally mandated parents etc putting up collateral or other securitization. |
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Post by rusty on Apr 9, 2024 15:58:21 GMT -5
We also have too many young people going to four year schools that should not be there. We have far too many nonacademic kids going to universities and far too few high achievers going into the trades.
I do think more guidance councilors are trying to direct good students into going into the trades now than ever before, which is a very good thing. The hard part for them is convincing many parents that little Johnny may be a perfect fit for the work and may very well do better financially. Some of the smartest people I have met were carpenters and machinists.
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Post by stroupy on Apr 9, 2024 16:02:00 GMT -5
I guess I was a fool for paying off my loans by working like a dog the way I did to do it.
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Post by rusty on Apr 9, 2024 16:08:46 GMT -5
Most of did the same stroupy. Ten years paid off in six. My education paid off nicely for me in more ways than financial.
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Post by jwk on Apr 9, 2024 16:19:07 GMT -5
This is about buying votes nothing more nothing less. Nope. It’s about US Treasury cleaning its balance sheet of Junk Loans with ZERO collateral and a 25 percent default rate with astronomical servicing cost exceeding interest revenue. I’m sure Treasury officials are relieved with cutting the dragging anchor. All these loans should have originally mandated parents etc putting up collateral or other securitization. So it just so happens he takes action right before the election both times. Like I said before and I stand by it. This is noting but buying votes. |
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Post by jwk on Apr 9, 2024 16:21:14 GMT -5
We also have too many young people going to four year schools that should not be there. We have far too many nonacademic kids going to universities and far too few high achievers going into the trades. I do think more guidance councilors are trying to direct good students into going into the trades now than ever before, which is a very good thing. The hard part for them is convincing many parents that little Johnny may be a perfect fit for the work and may very well do better financially. Some of the smartest people I have met were carpenters and machinists. I 100% agree with everything you said here! |
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Post by Loggy on Apr 9, 2024 16:39:36 GMT -5
Nope. It’s about US Treasury cleaning its balance sheet of Junk Loans with ZERO collateral and a 25 percent default rate with astronomical servicing cost exceeding interest revenue. I’m sure Treasury officials are relieved with cutting the dragging anchor. All these loans should have originally mandated parents etc putting up collateral or other securitization. So it just so happens he takes action right before the election both times. Like I said before and I stand by it. This is noting but buying votes. Well you “stand by” whatever you’re comfortable standing upon. I‘m comfortable basing my opinion on 36 years US Treasury experience working large financial enterprise cases in multiple financial markets. Too many try to politically broad brush things without diving below the surface this being a prime example. |
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Post by stroupy on Apr 9, 2024 16:46:18 GMT -5
Nope. It’s about US Treasury cleaning its balance sheet of Junk Loans with ZERO collateral and a 25 percent default rate with astronomical servicing cost exceeding interest revenue. I’m sure Treasury officials are relieved with cutting the dragging anchor. All these loans should have originally mandated parents etc putting up collateral or other securitization. So it just so happens he takes action right before the election both times. Like I said before and I stand by it. This is noting but buying votes. How many times can you use it before it backfires? Fooled the people once and are they dumb enough to fall for it again? |
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Post by jwk on Apr 9, 2024 16:49:59 GMT -5
So it just so happens he takes action right before the election both times. Like I said before and I stand by it. This is noting but buying votes. Well you “stand by” whatever you’re comfortable standing upon. I‘m comfortable basing my opinion on 36 years US Treasury experience working large financial enterprise cases in multiple financial markets. Too many try to politically broad brush things without diving below the surface this being a prime example. You have your opinion I have mine. Too many people try to make things complicated when the answer is right in front of them. As far as being political I would call this out no matter who was in office tryin to push this through. |
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Post by jwk on Apr 9, 2024 16:52:18 GMT -5
So it just so happens he takes action right before the election both times. Like I said before and I stand by it. This is noting but buying votes. How many times can you use it before it backfires? Fooled the people once and are they dumb enough to fall for it again? It's going to backfire, nobody likes their tax money being used to pay off others debts. These people signed the loan agreement, now it's time to pay it back. |
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Post by davet on Apr 9, 2024 17:21:16 GMT -5
How many times can you use it before it backfires? Fooled the people once and are they dumb enough to fall for it again? It's going to backfire, nobody likes their tax money being used to pay off others debts. These people signed the loan agreement, now it's time to pay it back. If the loans are in default with about a zero chance of collecting, is there a difference? |
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Post by Loggy on Apr 9, 2024 17:31:23 GMT -5
It's going to backfire, nobody likes their tax money being used to pay off others debts. These people signed the loan agreement, now it's time to pay it back. If the loans are in default with about a zero chance of collecting, is there a difference? Yep Dave....that was one of my points. There's ZERO collateral, high default percentage & astronomical servicing costs exceeding interest revenue!!! Amazes me that some can't grasp the facts? The charge off is a WIN WIN for taxpayer's!! Sure I paid mine & my kids loans like many others but that isn't the issue. Until legislators change the laws & firm-up the loan securitization process...the problem will continue. |
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Post by davet on Apr 9, 2024 17:46:32 GMT -5
When I was in business we always had a percentage of accounts that just didn't pay. (We, at the time did not take credit cards). After 6 months or so the non-payers got a letter from us. (Really.....who expects to get their tax return done by a CPA for free?). After another 60 days we turned them over to a local attorney who sent his letter. He got 40% of the fee. We collected about 90% of those deadbeat accounts. The other 10% we just wrote off.
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Post by jwk on Apr 9, 2024 19:29:10 GMT -5
It's going to backfire, nobody likes their tax money being used to pay off others debts. These people signed the loan agreement, now it's time to pay it back. If the loans are in default with about a zero chance of collecting, is there a difference? It's called accountability, If I don't pay my mortgage do I get to keep the house? |
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Post by jwk on Apr 9, 2024 19:30:09 GMT -5
If the loans are in default with about a zero chance of collecting, is there a difference? Yep Dave....that was one of my points. There's ZERO collateral, high default percentage & astronomical servicing costs exceeding interest revenue!!! Amazes me that some can't grasp the facts? The charge off is a WIN WIN for taxpayer's!! Sure I paid mine & my kids loans like many others but that isn't the issue. Until legislators change the laws & firm-up the loan securitization process...the problem will continue. No way is it a win for taxpayers when the are paying loans that others defaulted on. |
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Post by jwk on Apr 9, 2024 19:45:39 GMT -5
So if the taxpayers are fronting the money to pay off the student loan debt, and it is going to save us more money in the end, when do we see that money? Do we get a check eventually? Where does that savings go?
Of course I am being facetious because that is not what this is about.
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Post by jwk on Apr 9, 2024 20:01:05 GMT -5
Here is a Yale graduate. I don't feel I'm getting my moneys worth paying for her education  what do you think? |
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