Student loan forgiveness is not fair to the ones who have struggled to pay back their loans in the past but there has to be something that can be done to help. Tea for thought…There should not be any interest on student loans but it must be paid back in a timely fashion or then maybe and a small amount of interest. Also, there should be some sort of tax break while making payments. This should only apply to the ones who have actually completed their education, not the ones who signed up to get their grant and loans then drop out as soon as the checks are issued. My perspective on this…My daughter earned a masters in Speech Language Pathology. Her bachelors was paid for through scholarships but she had to take out student loans to pay for her masters. So she graduates, now she owes more than the loans she took out due to interest and because of her salary she is in a higher tax bracket. The taxes she pays would actually pay more on her loans than the actual amount due for the loan payment. So in ways it seems you are somewhat penalized for higher education. You work hard to further your education but then because you actually make money you are taxed to hell and back. So with the economy today, you are barely making it but make too much money to get any help. On the other hand, you could sit at home and not go to school and be given all the benefits and handouts and contribute nothing to society.
I believe they need to revamp the entire FAFSA program. Their software prediction for family contributions only works if your family doesn’t eat and/or pay their bills. Their concept of interest rate for a parent plus loan is absurd and I was given over 9% for this year’s parent plus college loan.
College payment shouldn’t start until 3 years after you finish school…, giving you a chance to get a job and not have the stress to repay right away.
Also it would be great if companies offered assistance to help repay your loans. Or offer overtime for compensation to repay for the loans. They match what u pay.
Maybe even offer community service to help pay off loans.
Originally, student loan debt was dischargeable in bankruptcy, but some newly-minted doctors and lawyers declared bankruptcy immediately upon graduating. I think student loan interest should be dischargeable in bankruptcy but not the principal. If the lender had a good reason, he could go after the university for the rest of the money.