What to expect if President Biden’s Student Debt Relief Plan passes

Financial expert Ali Hashemian joins us to talk about what could happen if the supreme court upholds the decision and how it could impact you.

[turkey]

Are we totally going to ignore the fraud that was prevalent in PUA or businesses that were gaming PPP??

[Mncrr]

I’ll tell you what to expect, college tuition will jump even more. Don’t people realize loans caused the fast rising tuition in the first place. College isn’t for everyone and mediocre students should start at inexpensive community colleges to see if it’s for them. Otherwise find a trade and get to work

[jasonredpill]

If that happens imma apply for a undergrad, grad, post doc, and MBA

[landonp]

It's not like its $500 billion dollars at one time. The government MIGHT make that money back over the next 20 years in repayments, but probably not as many people are either in default or on a PAYE program and paying little to nothing anyway.

[johnjenson]

Most of the debt forgiveness will be PRIORITIZED towards interest over principal!

[pedrowhack-a-mole]

Higher education is paid for by students but reimbursed by businesses and industries through a higher earning potential. If students choose majors that don't have the potential to repay student loans, that is on the students for making bad choices. Taxpayers, most of whom never had the opportunity to go to college, should not be put on the hook for the luxury of a few. If anybody needs to pay, it's colleges and universities that charge outrageous tuition for useless or underperforming degrees.

[KK-pmud]

It's not going to get through the Supreme Court

[klin]

Huh… how does this differ from company bailouts?

[sixstringsensei]

I made 21 years of payments and all it got me was more debt. The system is beyond disorganized. I finally got forgiveness through Bidens limited public service forgiveness waiver in January 2022

[TayBowie]

They have all this money for Ukraine.. shit, let Americans get a break too

[paulcolburn]

Love how he cites raising taxes as a concern. Like they’re NOT goin to do that anyway.

[His.Lordship]

It's nonsense that he only considered the negative effects of this. But consider the positives:
1. Inflation is almost certainly unlikely to be a consequence of this because it is co-occuring with the biggest deflationary element to hit the economy since the pandemic started: the resumption of debt payments on the much larger amount of federal student debt not being forgiven. Almost no one will be better off from this from the perspective of their month to month bill paying. Those with all their debt wiped out will be in the same position to consume they have been for the last 3+ years. Those millions of Americans who don't will have hundreds of dollars less per month to spend until they are out of debt.
2. The amount of debt before the pandemic was an incredible drag on the economy. We literally had not had positive growth without 0% interest rates to juice the economy since the financial crisis. I think the segment of the economy that is its chief driver, young people getting started, having comparatively meager resources because the need to take on enormous debt to go to school if your family isn't rich has co-occurred with a time when there are fewer and fewer middle class jobs available to people without a college degree as a result of offshoring, automation, and the decline in organized labor.
3. College affordability has long been a crisis but Democrats haven't had any leverage to address it, and many of them and pretty much all Republicans have been content to look the other way. Addressing the issue of college affordability and runaway costs in tuition and fees along with higher financing has long been necessary. Repeated cycles of forgiveness when things get out of control are really bad for lenders and because the lenders become less willing to lend, for borrowers when they do need loans. Lack of credit availability is less of a concern when the federal government is the lender and is willing to keep making the loans despite the fact that much of that they lend likely won't get repaid, but it is not a good situation for anyone, and I think Republicans and the to-this-point less concerned Democrats will finally be motivated to work together with more concerned Democrats to do something about college affordability and higher ed financing because they will finally find the reality intolerable if the other option is a cycle of ever mounting debt mitigated by cycles of debt forgiveness.

[backdoorletsdothis]

They've had three years to save money and make payments.

[mikenundahl-ocvr]

High energy cost and the effects don't require a high education, just not a very good one. No wonder you can't pay your loans. You were screwed.

[mikenundahl-ocvr]

How about they pay their bill instead of pawning it of on everyone else.

[mikenundahl-ocvr]

They obviously was ripped off on education if they don't have the intelligence to pay their bill.

[meejinhuang]

It would mean tax hikes for everyone including the people getting student debt relief.

[ConfederateHero]

If you don't pay your car note it gets repossessed so perhaps if students don't pay back their student loans their degrees should be cancelled.