Cancelling student loans and how it affects you

[Fedorgasm]

I don't want to get into whether it's a good or bad idea to cancel student loans. That shit can be debated in the war room.

But since it's happening I thought it might be good to discuss the economic impact and how we can prepare.

1. My first thought is that it will make inflation worse, as people suddenly having more money tends to do. Just like we saw with all the pandemic stimulus money.

2. Also, we've had a labor shortage as people who got stimulus money were able to hold out longer for better job offers or possibly leave the labor force for good as they used the money to start their own businesses. Cancelling student loans will have much the same effect, making the labor shortage worse. So companies will just have to pay higher wages, right? Not so fast.

3. If inflation is going to get worse, the fed will have to keep raising interest rates on top of the big rate hikes they've done already. This will probably make the stock market go down. And when that happens, companies tighten their belts, stop hiring new people, and even lay off employees.

4. When that happens, our labor shortage can quickly turn into a labor surplus. And high unemployment will be the final domino. Once that falls we'll undeniably be in full recession mode, if not depression mode.

And this sucks because there's no good way to prepare. If you sell all your stock to avoid the crash, you'll be left holding cash, which will erode in a high inflation environment. So you're kinda fucked either way.

 

[AGGAMEMNON66]

People with degrees typically wind up earning more career wise than those without. It makes no sense to make people who do not have degrees (or have long paid there’s off) to pay for a contract agreement someone else made, especially when many of those helping foot the bill do not have the same earning potential.


This is nothing more than a move made for political gain, not the betterment or well being of those it actually effects.. it’s pandering for votes, plain and simple

 

[DrDune]

How did this solve the underlying problem? That's my response.

Did the "predatory interest rates" change? No. Did the price of outrageous tuitions change? No. Are future generations of college students going to benefit from this cancellation? No. Did the institutions face any ramifications for their part in the problem? No. Are there incentives for these institutions to change their practices that led to rampant student debt? No. Did the debtors learn any fiscal responsibility aside from 'thanks for bailing me out taxpayers'? No.

It's lipstick on a pig. Everyone go out and thank their waitress at Denny's whose tax dollars are now subsidizing the higher educations of people more fortunate than her. Cheers!

 

[chimpoehurricane]

I don't want to get into whether it's a good or bad idea to cancel student loans. That shit can be debated in the war room.

But since it's happening I thought it might be good to discuss the economic impact and how we can prepare.

1. My first thought is that it will make inflation worse, as people suddenly having more money tends to do. Just like we saw with all the pandemic stimulus money.

2. Also, we've had a labor shortage as people who got stimulus money were able to hold out longer for better job offers or possibly leave the labor force for good as they used the money to start their own businesses. Cancelling student loans will have much the same effect, making the labor shortage worse. So companies will just have to pay higher wages, right? Not so fast.

3. If inflation is going to get worse, the fed will have to keep raising interest rates on top of the big rate hikes they've done already. This will probably make the stock market go down. And when that happens, companies tighten their belts, stop hiring new people, and even lay off employees.

4. When that happens, our labor shortage can quickly turn into a labor surplus. And high unemployment will be the final domino. Once that falls we'll undeniably be in full recession mode, if not depression mode.

And this sucks because there's no good way to prepare. If you sell all your stock to avoid the crash, you'll be left holding cash, which will erode in a high inflation environment. So you're kinda fucked either way.

Parasites are going to parasite.

 

[AristotleAmadopolis]

I don't want to get into whether it's a good or bad idea to cancel student loans. That shit can be debated in the war room.

But since it's happening I thought it might be good to discuss the economic impact and how we can prepare.

1. My first thought is that it will make inflation worse, as people suddenly having more money tends to do. Just like we saw with all the pandemic stimulus money.

2. Also, we've had a labor shortage as people who got stimulus money were able to hold out longer for better job offers or possibly leave the labor force for good as they used the money to start their own businesses. Cancelling student loans will have much the same effect, making the labor shortage worse. So companies will just have to pay higher wages, right? Not so fast.

3. If inflation is going to get worse, the fed will have to keep raising interest rates on top of the big rate hikes they've done already. This will probably make the stock market go down. And when that happens, companies tighten their belts, stop hiring new people, and even lay off employees.

4. When that happens, our labor shortage can quickly turn into a labor surplus. And high unemployment will be the final domino. Once that falls we'll undeniably be in full recession mode, if not depression mode.

And this sucks because there's no good way to prepare. If you sell all your stock to avoid the crash, you'll be left holding cash, which will erode in a high inflation environment. So you're kinda fucked either way.

people won't actually hold the cash/check, correct? 10k will be just knocked off their balance i thought. so they won't be able to blow it on stuff and junk at least.

 

[Fedorgasm]

people won't actually hold the cash/check, correct? 10k will be just knocked off their balance i thought. so they won't be able to blow it on stuff and junk at least.

No but if your debt is wiped out and you don't need to make payments anymore, you suddenly have more cash every month.

 

[Sonny Qc]

I'm Canadian, everything is free here.

So no.

 

[AristotleAmadopolis]

No but if your debt is wiped out and you don't need to make payments anymore, you suddenly have more cash every month.

most people probably have more than $10k in debt. this is also just going towards federal loans not private. you might be right that this will create the wrong perception and a buncha boomer-haters with no financial literacy will then blow money on shit...

 

[Sweater of AV]

I don't want to get into whether it's a good or bad idea to cancel student loans. That shit can be debated in the war room.

Lol at this and then the first reply.

 

[Sirwastealot]

Never really made sense to me, people opted in to the debt so they can get degrees and experience the college life. Then a few years later they complain about it and want it wiped out.

Covid and the economy lately changes things, they couldn't have predicted it. But wiping out all student debt still doesn't make all that much sense.

Help people who're struggling with healthcare instead

 

[Fedorgasm]

Lol at this and then the first reply.

Yeah I never learn.

Two things I can never get sherdoggers to do:

1. Discuss a topic without delving into politics
2. Read beyond the thread title before replying

 

[Fluffernutter]

It won't effect me until my kids go off to university. I want to know how this will impact tuition costs 5, 10, 15 years from now.

 

[Zebra Cheeks]

I don't want to get into whether it's a good or bad idea to cancel student loans. That shit can be debated in the war room.

But since it's happening I thought it might be good to discuss the economic impact and how we can prepare.

1. My first thought is that it will make inflation worse, as people suddenly having more money tends to do. Just like we saw with all the pandemic stimulus money.

2. Also, we've had a labor shortage as people who got stimulus money were able to hold out longer for better job offers or possibly leave the labor force for good as they used the money to start their own businesses. Cancelling student loans will have much the same effect, making the labor shortage worse. So companies will just have to pay higher wages, right? Not so fast.

3. If inflation is going to get worse, the fed will have to keep raising interest rates on top of the big rate hikes they've done already. This will probably make the stock market go down. And when that happens, companies tighten their belts, stop hiring new people, and even lay off employees.

4. When that happens, our labor shortage can quickly turn into a labor surplus. And high unemployment will be the final domino. Once that falls we'll undeniably be in full recession mode, if not depression mode.

And this sucks because there's no good way to prepare. If you sell all your stock to avoid the crash, you'll be left holding cash, which will erode in a high inflation environment. So you're kinda fucked either way.

Both the stimulus money and the student loan forgiveness will hit me. And they help. I mean I’m not gonna lie it’s certainly nice to have that money, but I’ll be the first one to say, it’s not like I “need” the money. I’m not worried about feeding my family and my bills are paid every month. There’s tight months here and there but overall I do ok.

So why am is money being thrown at me hand over fist? It’s a bit confusing. Sure it’s nice to get the money but I’m not even at the top of the bracket for folks being given these funds so it makes you wonder how many of these people actually need assistance.

 

[My name is]

I have no clue but to me it's just a move to buy votes with zero care about the impact it will have. Pretty much like everything else

 

[Trainspotter]

Paid mine off years ago like a normal person so doubt I see much affect from it.

 

[Rob Battisti]

For me? Taxes and inflation increase

 

[boingyman]

Has no immediate or direct affect on me, but it doesn't mean it won't somehow in the future.

 

[My Spot]

If only other states did what we've done here in GA for almost 30 years - have a program funded 100% by a lottery that covers tuition and fees as long as you graduate HS with and maintain a 3.0 GPA (and it's only GPA, ACT/SAT scores don't matter). Covers your books if you maintain a 3.5 GPA.
And if only people would do their undergrad at community college.
And stop going to private schools.
And stop majoring in worthless liberal arts.

 

[Shaun K]

The democratic party has always been pathetic, but this is nothing more than buying votes from the simpletons with lol…. liberal arts degrees

 

[Spounman]

The democratic party has always been pathetic, but this is nothing more than buting votes from the simpletons with lol…. liberal arts degrees

Yes. I laughed when the analyst on the news said people who were saving up to pay loans can now spend there extra money. Who's saving up to pay loans

I had loans, I paid back a ton my first 4 years or so out of college. I'm not bitter that people are being let off the hook though, doesn't affect me anymore.