CNN reporter explains impact of student debt relief on economy

55 comments

President Biden announced a federal student loan relief plan that includes forgiving up to $10,000 for borrowers who make less than $125,000 per year. CNN commentator Catherine Rampell and CNN business correspondent Rahel Solomon share their reactions. #CNN #News

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55 comments

  1. It’s the interest that compounds that becomes a problem. Puts graduate in a financial prison for years. I paid my student loans and I support debt relief. It was hard to pay of 10k because of interest.

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    1. Absolutely! My loans were less than 80 K, but when they compounded they went to over 124,000! My interest rate 6.5%! Couldn’t refinance even though rates for everyone else in the US went down to below 3%.

      They need to reduce the interest rate to be between 2.5 and 3% and I need to apply that retroactively. For anyone who has paid their student loans off in the last five years, they should get a credit equal to whatever the savings may have been for them.

      Then they need to allow students to pay the student loan‘s with pretax dollars. This will lighten some of the burden and encourage students to work.

      Also, they need to ensure that the original day of the loan stays the day of the loan no matter if the loan changes hands. I am so sick of my lungs changing services and it looks like I got a brand new loan. I’ve been out of school since 2011 but my lawn shows that I just got it back in August and my credit score dropped by like 13 points. It’s so damn frustrating!

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    2. @Greg Huff young people are impressionable; guidance counselor’s and other adults telling the to go to college, and get a degree. They show you the math and give many examples that it IS the best decision you’ll ever make. Now, of course no one told you to go to college, and your parents couldn’t afford it, so you didn’t, and you landed a decry job anyway, but don’t ignore the pressure to get a higher education. Some do well; others don’t!

      What’s not fair is that many students are paying 6.5% interest and they cannot get that rate reduced! Even though they make payments, the loans don’t go down much at all—some increase! Then, every time that the loan servicer changes, it shows on your credit report that it’s a brand new loan. You can be out of school for over a decade, if that loan change his hands in August, your loan date will be dated 8/2022–tanking your credit score—which in many states, means you pay higher car insurance! It’s a damn racquet!

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    3. It’s yet another legal scam. You wanna go to school you want a piece of paper from our great 100 year old school it’s gonna cost ya 50k smackaroos buddy!!!

      And it’s not promised you’ll get that awesome job you want!! But don’t worry about that you have a paper from a 100 year old school!!! It’s as good as gold i tells ya!!! 😉

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    4. I’m gonna get $10,000! TAXPAYER LUNCH FORGIVENESS by going to a COLLEGE cafeteria every day & just WALK OUT
      with a great lunch every day!

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    5. @Greg Huff According to your logic, now one cane afford a home, car, a. I’ve dinner paid with a credit card just to get miles, or anything that requires credit. Guess that doctor that you see will now become a doctor, that nurse too. The legal advice you get from an attorney, guess you can’t get that anymore either. Lots of professions and even just to get a decent job, you’re going to need that degree. Your logic makes no sense. Some people were sold a dream that the last few generations have single handedly ruined the chances for them to succeed. The policies that seem to benefit older generations have left the younger ones with more debt and less options to get ahead. This generation will be less well off than the last for the first time in the US.

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  2. The corporate managerial class wants you to think this is a bad thing because it’s basically a windfall for labor instead of corporate handouts. Don’t fall for it. When the Fed printed money and dropped interest rates to boom Wall Street and all asset classes, it was cheered. That was the real cause of inflation. We need broader higher education reform, and this is small first step.

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    1. “small first step” in the same way the Affordable Care Act was the “small first step” to single payer healthcare. Meaning, it’s not.

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  3. This is great for some people but you really need to regulate the actual universities who are charging absurd amounts, and that’ll get lobbied against hard by college corporations.

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    1. It’s fine!!!
      They will increase other products that students need.
      Let American citizens pay a bit more, just so students can do an expensive art study.

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  4. As great as the debt relief is, its just a band aid.
    Start capping the amount educational institutions can charge or set up training institutions that charge lower prices that others will have to compete with.

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    1. So where is the money coming from?
      Thought they wanted to pay off the deficit. This would increase their spending allot, instead of reducing.
      Or will the citizen pay more, so student can study something they cant pay?

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    2. It’s not great at all. Why should my tax dollars pay for someone else’s choice to take out a student loan? If I take out a mortgage loan to buy a house, should your tax dollars pay off my mortgage? Or was that my personal choice and my responsibility?

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  5. Just 40 or 45 years ago, going to university in America was free, then corporate America took advantage of the educational system.
    The problem is the educational system in America, if you are a middle class or poor families going to university in America is a lifetime debt .

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    4. @Queen T Prior to the early 1980s, public colleges were heavily subsidized by the states with some assistance from the federal government. The in-state tuition rates being different is actually a holdover from this era. While never free for most (there were exceptions, need-based mostly, but also a few incidental programs) only 10% of the cost of tuition was borne by the student or their family. After Reagan came into office and made the California model of the time a national priority, the tuition burden flipped so that the majority of costs were borne by the individual. Private universities used this system to their advantage to make public schools look like a lower quality option, even though Penn State will statistically give you a better education than Harvard undergrad for less than half the price. It will still not generally get you a better job, however.

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  6. Student loans should be dischargeable or modifiable in bankruptcy proceedings based on a proper showing of financial hardship. It is absurd that the credit card debt on a Spring Break trip to Cancun is unquestionably dischargeable by a bankruptcy court, but tuition, housing, and fees for college are not.

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    3. @Tim P Completely agree with you Tim. Why fix the university system that created it first! That would be using our brains I guess.

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  7. And companies like Amazon and Apple don’t pay any taxes, which if paid would equal up to the amount of student debt.

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  8. The Federal government guarantees the education loans. The lending institution and the university/college are not liable for any of the loans. Thats the problem.

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  9. The underlying problem is that there are no other loan options. And there are no longer any grants you don’t have to pay back like there were before 1980.

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  11. Yep just got out of meeting, college tuition going up!!Absolute failure in a course in economics!!!

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  13. I will give Cnn credit for this one..
    An honest veiw of what I believe is a foolish policy. Refreshing to see instead of the usual cheerleading for the democrat party.

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  14. If students are not burdened with big loans they can buy a home, start a family much earlier and start paying taxes to help the next generation! Sounds like a good plan to me.

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  15. Honestly, if you do something like this atleast make it only for those that finish their study in the set time.
    Also make damn sure that the current working American citizens dont need to pay for this…
    Wich im 90% sure will happen.

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    2. I can’t possibly explain how a blue collar busting his butt in a factory needs to pay for kids that went to college and now make $100k. It’s just so wrong

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  16. Remember it’s only federal loans and those parents with less than stellar credit scores could not get federal loans.

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  17. I will explain… this will increase inflation the same amount the inflation reduction act was supposed fix. But it wont be felt until after the midterm election. Also the majority of these loans are for people who already have a bachelors degree.

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  18. “It doesn’t solve every problem in the higher education system, so do nothing” is analysis you really need to be in a very privileged and comfortable place to serve with a straight face.

    Reply

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