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The President Joe Biden's administration has forgiven students that have outstanding students loans they haven't paid.
 This forgiveness runs into about $39 billion in student loan debt to more than 800,000 borrowers.
This gesture which I describe as one the best gestures this administration has done.

This are some of the government policies I sometimes applaud because it has a direct effect on cushioning of debt burden on the students, which some of them have been struggling to pay off.

To a large extent, it shows the administration has humane Face. This will really go a long way in relieving some of the students past and present that are indebted.
What do you guys think about this news from the department of Education and what effect can this have on the US economy.
https://www.foxbusiness.com/economy/biden-administration-forgives-39-billion-student-loan-debt-more-than-800000-borrowers?intcmp=tw_fnc

I'm not sure that the effect on the US economy, student loan forgiveness can boost consumption and boost shortterm economic recovery, as students will have more money to spend and invest in the future. But be aware of the fact that this can have a longterm negative effect, by creating a signal that the loan is forgiven, leading to an increase in the value of student loan debt in the future.
And the story that they may be good once but they have done bad many times and not entirely sure of their machinations after that, but honestly I am not a fan of the current US and Biden administration, With a new election coming up, it could also be part of a plan to gain public confidence.

This is a good gesture for the Biden`s administration. It is far better than forgiving those who have loothed the public wealth. Some government have mistaken priority and they decide on policies that won't add value to the economy. This loan that has been forgiven is still going to be channeled into the economy one way or the other because those students are going to be graduates that will contribute to the economy and those who want to start up a small business can use the money that would have been used to repay the loan to start the business.

It is a good decision but may not be unconnected with the forthcoming election because politicians know that the largest voting population is the youth and so they focus to win them over during electioneering season.

This students can contribute on the governement through their taxes for their life time. I think this move is really good in long term since this student will surely get their job once they already graduated. It’s better than some politician pocketed government budget for their own good without any economic benefits for their country.

Here in PH, There’s a law here which you can have a free education up to college by enrolling on state universities. I knew that education system of US is very expensive. Just trying to emphasize that a country can focus on helping students with their college fees so that they can have work faster when they graduated.

They are not students anymore!


It's people who have been paying the loans for 10-30 years and still haven't been able to qualify for forgiveness, most have quit schooled a long time ago and I don't doubt that there are some who are a few years from seeing their kids go to a college!


Again, just like the other guy, you have no idea what you're talking about and what this forgiveness is about!


If anyone is really interested in knowing why student debt is such a problem, and not just posting some dribble read the statistics here :
https://www.forbes.com/advisor/student-loans/average-student-loan-debt-statistics/

Especially this part:

39 billion is inconsequential to the U.S. economy considering how recklessly the U.S. government will spend trillions of dollars without thought, and subject them to exponential debt growth. Besides, they've sent Ukraine more than that in aid over the past year.

This is nothing more than a campaign tactic for Biden seeing as it's election time. The Supreme Court struck down his insane proposal of forgiving nearly 500B USD in student loans which would have allowed him to spend an unforeseen amount of money and circumvent Congressional oversight simultaneously. Not clear how he has the authority to forgive 39 billion -- assuming it's through executive action, all he did was essentially print 39 billion USD into the economy. Consider it an expensive campaign expenditure.

I think I am with @stompix on this one. Just reading the whole thing gave me an anxious feeling about how are they even planning this stuff. You can't just go the market and absorb finances just like that. God dammit this is not saving the students but this is putting more burden on those peeps who are yet paying their taxes and are working hard for their lives. Those who are saying this is nothing and that is nothing, man this is how it gets piled up over a period of time and the pot of debts keep feeling. It's funny how casually this is being taken. Definitely, they are not students since most of the education loans start availing the interest after the student is qualified for the job. I mean that's a huge loss for the banking system. Now they will have to print more money out of thin air and speed up inflation. That is serious. It might look tiny budget but they keep playing this card for various schemes and everything rises with time. It's an uncalled burden, to be honest.

I am not a citizen of US but I will commend the president's gesture to wave the debt for the students. Although, the policy to loan student money to complete their school is not necessary in the first place and I assume it to end in this way. Nigerian government has replicate the policy as well which to begins in September. full details here (https://punchng.com/student-loan-disbursement-begins-in-september-fg/).

The point is, what student need is a working system that their future will be assured after graduation. The government should allow students and their parents to struggle for school fees while government employs them after graduation and not the other way round of giving them loan that they can not be able to pay off after graduation due to lack of job. By offering the loan will just inflate the number of jobless graduates in the street.

Provide a working system and not loan that you will continue forgiving. It's obvious, you either forgive or you arrest countless number of debtors.

i can say this is such a relief for students because i am also a student and i can understand the debt and weight which was so heavy on their shoulders have been lifted up by the governments so i think a little appreciation is their right.

I also heard another news in which Canadian Government had provided relief to the students too. Like many students were scammed by brokers to bring them in canada and when they caught by the authorities, it was announced that all those students will be departed but now authorities has changed there minds to accept them in their country.

And coming to the economic progress part I think in the long run those students might made their mind to come up with something that would help the US economy because most of the student want to do something for the country in which they are studying amid the fact they are from foreign countries.

It's a good gesture, one embracing to the student community, this would lift a lot of burden on the students to focus much energy on their studies not having to think on how they would be able to meet up with paying their debt and same time with studies. On the part of the economy such amount of money pardoned wouldn't have any negative effect on the US economy the economy will rather benefit from such gesture in the near future from the good brains that benefits from this student loan pardon.

The article is quite confusing or maybe it has left out a critical piece of reporting. I remember reading that the supreme court had ruled that the forgiven progress was not allowed to go ahead, does that mean the instead of the education secretary performing the loan forgiveness it ended up being Biden completing it instead? If someone has been paying for education for 20-25 years it does feel like it would more than paid off the original cost and excessive amounts more. It's nice to see presidents doing this rather than destructive things like signing off new artic drilling or destroying national parks.

When you think of it from that point of view, it does seem problematic. Yes, it's a good gesture for the people in debt. But it will highly affect the economy if you think about the long-term effect. First, I thought it is a great work by the government, but then it came to my mind after reading your reply. At what cost? Inflation will happen if this goes on. The government will have no other choice but to print more money in order to cover up the mess. If you see the top of the iceberg, it seems nice and many will think that those students will have much more freedom to contribute to the country in the future. But before we reach that period of time, inflation will kill their dream.
I don't know what Biden was thinking. They could have decreased the amount, but to completely forgive all the loans is going to have a huge impact later on. All we can do now is just sit back and watch what the future holds. If it works according to the plan, then the results will be positive. If not, negative impact will harm the economy a lot.

Ohh, its just another poor old trick to win election but I don't think it will be effective cause they only managed to implement very small numbers than what they planned to do. But for the economy it's going to create bad effect in the long run cause government has to print more money or change tax rates which directly going to affect the people again.

Instead of giving relief to the loan debt why not create job opportunities for these students?

Presidential elections are scheduled for 2024, and Biden has declared his desire to run for a second term. Obviously, the administration will go for any populist measures to boost ratings. It is quite possible that there are certain restrictions in this decision that will reduce the number of students covered by the law

This soooo fuc*** up!

SO I BUST MY ASS, 100k in tools who is paying me back?

What about the people who diligently saved or took seconds out on homes to pay are they getting paid back?

Are they paying trade school loans..

Vote pandering commie bullshit

This is a great act of humanity because some government will just pass this to a bill somewhere and won't do it. The Nigerian government also propagates this student loan in the country just hoping that government officials won't put corruption, nepotism, and red-tapism into the process and do well for every student who needs the loan.

The truth is that student loans are not a good way for both the student and the economy and at that we should arrive at a better alternative to sort students financing and this can have a more positive impact than student loans and just as you said,  for president Biden to have forgiven the students loans and it points to the more negative reflection of the increase in students loans defaults.


I also heard about some other countries trying to adopt the student loan policy at first students may see this as good support for the tuition and other expenses,  but then if the government really want to provide relief or support for the student it shouldn't be based on as a loan or any form of a mortgage.

Yeah, it will increase the spending power of these debtors because they will have extra cash to spend on something else. Businesses will also enjoy high patronage and jobs can be created. But its long-term effect will be inflation. And the inflation will affect everyone, meanwhile, this policy favored few persons. I don't see anything wrong with students paying back what they owe if they have been gainfully employed. Politicians can do anything to gain political power.


I was thinking about the implication of the government losing such an amount of money that would have been used to invest in other sectors until I read your post. The financial recklessness of the government in financing the war in Ukraine is nothing to compare with the amount spent on this loan amnesty. But others might also argue that Ukraine needs support.

It is good and will be a great relief to the 804,000 students who have had the burden of how offset the student loans that have incurred over the years and they have been paying for 20 years and more. The Biden administration is capable to do this even more than the $39 billion.

 The country have invested a lot in financing wars in other countries, doing this for the citizens is good.

It's a good thing that Joe has covered those loans. I know that some students who really have the desire to pursue formal education can go to any length to make sure they acquire the education, and having to take a loan to do so is not really bad because definitely those students would still graduate and can still be employed in some government organisation. By so doing, they are serving the country, for whom they have also received a favour in the loan repayment, so I think it also contributes to the economy. Perhaps the government knows how much they have repaid each student. So, even if they (the government) wish to get back that money, they can still get it when all those students have started working.

Now many of the studen would be free and concentrate on the study without having much burden on loan to pay back which can reduce the interest or zeal to read and pass exam. The students loan forgiveness is something that will boost the economy and make money to flow very wellaking people to make plans for other things they need to buy and stay healthy.

Loan is nothing that can affect people if we don't know what we are doing or allow the loan issue to affect the way we think or react to things around us. Although this can have a great effect later because some persons might think of getting more student loan because they may think that the government is still going to forgive then and that will end like that.

You do understand that money most likely stays in US and acting as a stimulus package and those people have now more to spend in US products, and that's indirectly driving economy up.

And US has insanely big budget anyway and this is like fraction of a drop in a sea. From outside looking in their taxation doesn't make any sense. They really should tax the rich more for the system to be sustainable.

Well, I'm not surprised at the number of people in the thread saying it's good news, given the trend of this forum. Good thing there are those with knowledge:


This type of policy penalizes those who do well and rewards those who do poorly. Those who paid their student loans are now aggravated because Biden is going to pay for part of the party for the cicadas. In other words, two twin brothers studied the same degree and got into the same amount of debt. At the age of 60, one has long since paid off his student loans and has built up a good net worth, while the other has not only not paid off his student loans, but has many other loans because of his spending habits, among them regular parties with hookers and cocaine. But for the latter the state is coming to save him, lol.

Besides, without so much government intervention with student loans, college prices would not be so high and students would not need so many loans.
 
It is a typical example of politicians offering a bad solution to a problem that they have created and that only makes it worse.


Really? I would never have imagined it.  ;D

This doesn’t really mean anything because he can say anything but if the SCOTUS will block it there is nothing he can do. Just like it happened in the past.

One reason is that it’s not fair to those who had student debt and worked hard to pay it off. They are all pissed if those with debt get some relief. Hence why this is a huge struggle for many.

Those will student loans want relief.
Those without student loans don’t want relief.

I understand. As I mentioned, 39 billion isn't a lot of money. But if the U.S. President has the authority by executive action to cancel 39 billion in student debt, how does this conflict at all with SCOTUS striking down the 500 billion Biden tried to cancel earlier? The legal framework seems convoluted so I raise this as an issue because even if it's for a social/economic stimulus, the executive branch should not be in the business of printing money out of thin air.

And by the way, I don't think stimulus packages are a good idea either. The entire idea involves the federal government issuing a loan out to itself on behalf of their constituency. The federal government can never default on their loan so it comes money creation without consequences. Under an economic system where new currency couldn't be minted, then stimulus packages might work.

This is really good and for sure the students are happy about this but i do hope that those people in middle class or on poor sector binefit it because they are the one that needed this and also they need help. Rich people can still pay the tuition that is why it is better to exempt then and their slot should be given to those worthy people. For sure also parents are happy on this as they are now focusing on their foods and needs and not thinking about paying those loans

The idea of ​​friend o48o, that forgiving student debt drives up the economy is similar to the genius that if money is needed in a country, all you have to do is print it. Typical idea of ​​someone who does not understand the basic fundamentals of economics and offers simple and wrong answers to simple questions that have a complex (correct) answer.

I am not going to try very hard to explain that the USA is the country with the highest standard of living on the planet precisely because there are many rich people.

Waiving this much for the students truly is a big gesture. But I am thinking that the government will take a return on this one through printing of money. That's why there have been stimulus that have been distributed to its people but anyway, these students have already became professionals and from there, they will be able to contribute to their government through taxations and from the services, jobs and home mortgages that they'll take.