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.
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
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.
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.
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.
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.
Thanks, I'll add this to our list of consideration
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
Great Podcast Travis.
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.
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.
How do I find out what my status has defaulted I have moved recently? Thanks
Omg this is confusing, (not his explanation by the way..the whole system)
When this debt ponzi scheme implodes in 5 years we need Travis as head of department of education!!!!
Thanks for being an avid supporter on the socials!
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.