How Did Student Loans Become So Political? | Republican vs. Democrat Student Loan Policies

Student loan forgiveness has been a political hot potato for years, and recent moves by the Biden administration have reignited fierce debates. I’m breaking down the political chess game behind these battles and where things might go from here.

In today’s episode:
00:00 Introduction
09:24 Regulations unintentionally increased debt balances for borrowers
18:46 The COVID student loan repayment pause triggered a ripple effect
24:48 Transitioning to executive action after not getting support in Congress
31:10 Provoked by benefits, costs, and generous terms, Republicans decided to sue

#StudentLoans #StudentLoanForgiveness #StudentLoanPlanner

[interestedparty]

A better topic would have been to explore why there has been a historical bipartisan agreement and continued refusal to prevent student loan discharges in bankruptcy courts.

[dpo]

I think political parties have always searched for pools of potential voters that they can capture with govt policy. That normally involves spending more than saving.

[SmecaWash]

I appreciate this so much because the hoopla around student loans is so different than years ago and honestly when these IDR plans were enacted I don’t think FSA thought it would take people 20-25 years to pay off their loans… the problem is the low payments and compounding interest has caused the loans to double. I hope we get clarity in October and for all of our sakes that IDR forgiveness is still a thing

[nickt.]

It would seem that a single IDR plan approach without interest accrual would be most reasonable. For example, IBR at 10% of discretionary income for 20-25 years, no interest accrual and the remaining balance is taxable. Because the interest wouldn’t accrue, borrowers would have time to save and invest in a Roth and prepare for taxation if necessary. The so-called tax bomb would be less likely to be excessive without the accumulation of interest on the original loan balance. I am sure I am oversimplifying it, however.

[redpill-finance]

When this debt ponzi scheme implodes in 5 years we need Travis as head of department of education!!!!

[ez]

How do I find out what my status has defaulted I have moved recently? Thanks

[dolphindddd]

I believe that the election coming up in November is going to be more than just who we vote for president. What the next president can do is going to depend also on the makeup of congress.

[juandavidospina]

Omg this is confusing, (not his explanation by the way..the whole system)