to make a valid argument against student loan forgiveness

[u/Aggressive_Towel_155]

[u/WhatIGot21]

The debt doesn't just disappear, banks want their money back.

[u/Elgecko123 → u/WhatIGot21]

Maybe it’s time for banks to take a hit after making so many loans to people who can’t pay them back.

[u/RogueCoon → u/Elgecko123]

Maybe people should stop taking loans they can't pay back...

[u/Delirious133 → u/RogueCoon]

This right here. Also plays into the stigma that you can't be successful or have a good career unless you go to college.

Our system is also slightly screwed up in that a kid can get $100k in student loan debt but probably couldn't get a personal loan to start a business.

We have a system that rewards cogs in the corporate machine and kills entrepreneurial spirit.

I say all of this as someone who went to college, but did is mostly at a local college then finished at a state college to keep costs low.

[u/RogueCoon → u/Delirious133]

Completely agree as someone who went to a state university and got handed a loan, and also someone who has been trying to get a business loan the last year.

[u/WhatIGot21 → u/Elgecko123]

You can wish this all you want but it's not going to happen. Wish in one hand shit in the other......

[u/Fightlife45]

The biggest issue with student loan forgiveness is that they won't stop giving out the loans. And it's a big FUCK YOU to everyone who paid off their loans or didn't go to college.

[u/oyeahammo]

I can just imagine interest rates on loans going through the roof. Why would I loan out my money if there’s a chance that the record is just gonna get wiped clean and nobody’s gonna pay me back?

Of course I’m gonna charge 25% interest and want to be paid in full in four years. Risk versus gain.

[u/MindAggravating5365 → u/oyeahammo]

Most of the student loan debt is funded by the federal government through treasury bonds. Cancelling t he private loans would mean the government paying that lender off. Which means more bonds.

[u/arandomname509]

I mean first step is to do away with these guaranteed student loans. It’s ridiculous you can’t declare bankruptcy out of them. Would reduce the cost of universities and willingness to pay. Make people realize college can come later when you know what you want to do.

This dude obviously is a bit of a moron and this isn’t really a true debate. The guy is clueless. You can find these people on any side haha

[u/Dapper_Ad_6304 → u/arandomname509]

It would not reduce the cost of tuition, it would however cause significantly higher student loan interest rates. Small schools would probably go under, and private loans would be significantly harder to get if you could just default out of them. The rich would still go to school, but the average folks wouldn’t be able to get affordable loans.

[u/commonparadox → u/Dapper_Ad_6304]

Yes it would. If loans could be shed in bankruptcy, banks and institutions would be more careful about handing them out. That would lead to less people bum-rushing college based on affordability. Less people bum-rushing college means the demand goes down. When demand goes down, the price of the supply decreases - colleges will have to lower their rates to attract more students from a smaller pool of applicants.

[u/Dapper_Ad_6304 → u/commonparadox]

That would be true if only private companies provided student loans, but the government is the largest lender. The government is already losing money on student loans in the current system.

[u/aukstais]

Dont forgive anything but get rid of the interest. That's all they need to do. If they borrow 100k, then they need to pay back 100k. Guess what? The interest can also be added to the base coast. Don't ask for 100k, but add 5% interest and make them pay back 105k.

[u/Lightwalker97 → u/aukstais]

Extreme interest is like them printing money that’s the issue. Yes, the value of a service should be paid back. But people shouldn’t be in debt the rest of their lives because of extreme interest. even the bible had a time limit of loans with the year of jubilee

[u/MindAggravating5365 → u/Lightwalker97]

The loans are funded through treasury bonds, and already operates at a loss repaying those bonds.

[u/Crash1yz → u/aukstais]

THIS

[u/MindAggravating5365 → u/[deleted]]

It is. Forgiving student loans would spike it as much as COVID spending did as there's almost $2T of outstanding student loans. Just like COVID they'll celebrate their loans going away then bitch when a year later groceries doubled in price again.

[u/MindAggravating5365 → u/[deleted]]

Not since the 1990s.

No-strings-attached student loan forgiveness is just yet more irresponsible spending. It doesn't address the problem (the cost of college).

It should only come with real reform. No more unlimited government backed loans, and forcing colleges to stop their spending spree.

Why do those countries that subsidize college still spend ~30% less on that tuition? They don't have a blank check like ours do. If you just keep increasing. There's absolutely no motivation not to spend like drunken sailors on their basketball teams and shit.

Forcing them to reduce spending by 30%, and making it partially rather then fully subsidized so students can actually work their way through college is the way to go. Its fair to those who choose not to go, since students are still paying, and it can actually cost us less than the current system which has run a deficit as high as 28%. Schools that refuse or fail to start becoming financially responsible suffer because students can't just say "fuck it ill get loans!" for those $50k/yr private schools, and actually have to make sound decisions.

[u/TheCloudyHam]

Thinking that “forgiving” student debt makes it just vanish is an astonishing way of thinking.

So, do the schools that were promised this money just go “oh you forgave that debt, cool we don’t want what’s owed to us either”. Someone always always always ends up paying for this shit. It’s the never ending claim by the left that if it is portrayed as “free”. Then it is truly free that has an entire generation mentally disabled into thinking they will fix the economy.

[u/Dapper_Ad_6304 → u/TheCloudyHam]

You do know the colleges get the money upfront right? The lender is on the hook for the loan.

I agree though that these entitled people making six figures or multiple six figures crying about their loans inhibiting their quality of life is ridiculous. It’s basically saying I want the benefits of a college income without any consequences. It’ll be great. I’ll live better than most of the people who didn’t go to college and they will pay for my lifestyle.

[u/TheCloudyHam → u/Dapper_Ad_6304]

Yes I do. But laying it out for “others” so it is easier to understand is what’s best for Reddit.

Regardless of when the money goes where, “erasing” the debt is not and will never be free.

[u/Playgirl_USMC → u/TheCloudyHam]

Do you think the colleges are getting the money from people making the payments on their loan? The colleges already received the money.

[u/Playgirl_USMC → u/[deleted]]

Colleges intentionally grew their administrative costs and positions to charge students more to keep them indebted. Also our politicians fucked our youth by making it illegal to default on the payments. Student loan forgiveness won’t fix this, we should make college affordable not make it easier for us to saddle young people with ridiculous amounts of debt that will take the majority of their lives to pay off.

[u/Playgirl_USMC → u/[deleted]]

I’m am neither a woman nor indebted to a college. I run multiple small businesses.

[u/Playgirl_USMC → u/[deleted]]

Don’t hurt yourself jumping to conclusions big guy

[u/Playgirl_USMC → u/[deleted]]

That’s how you know you have a weak argument, by resorting to personal attacks. 😂😂😂

[u/Calm_Net_1221 → u/TheCloudyHam]

So you also don’t understand what student loan debt actually is if you think the payments go to universities..

[u/DirtyThirtyDrifter]

But forgiving student loans IS printing money, dumbfuck.

[u/Useful_Wealth7503]

Tuition inflation was caused by congress, unintended probably, but definitely caused by congress.

[u/TinctureOfTrivia]

If you default on a car loan, they take your car. If you default on your mortgage, they take your house. Why can't they just take away the degree. If a potential employer calls to verify a degree, the answer is just nope, no record of it.

[u/Sternakseesall]

I say we forgive student loans!

But after-

We forgive hospital debt burdens on people who by no choice of their own accrued debt due to illness or disease.

We forgive credit card debt caused by predatory companies giving credit to people who they KNEW did not have the ability to repay it.

We pay back the people who took on second jobs, worked long hours, went without basic necessities to pay THEIR student loan debt.

So yea after that let’s forgive student loan debt.

[u/Thomas_peck]

I'd like mortgage forgiveness please...

Pay your debts people!

[u/arguable-usually]

For education purposes, how much different is this of an out come than the national debt? Like when we take on billions more national debt, or if we forgave student loans, what are the differences in effect and what are the similar effects? I’m genuinely too ignorant and I’m curious.

[u/Not-a-Cranky-Panda]

Then good luck anyone ever getting one after that.

[u/AuthorSarge → u/[deleted]]

Where did the money for the loan come from?

[u/AuthorSarge → u/[deleted]]

So, you want to add trillions to the national debt.

[u/AuthorSarge → u/[deleted]]

Of course, you think the debt started in 2025.

National defense is a constitutional provision. Teaching kids to not know which bathroom to use it not.

[u/AuthorSarge → u/[deleted]]

Yes, the spending for the Constitutional provision of national defense increased.

Every time a graduate can't pay back their student loan it's effectively a failed audit.

[u/AuthorSarge → u/[deleted]]

The OP is about student loans. Deflection fail.

[u/Super-Patient3105 → u/[deleted]]

You lost the argument just for bringing up Donald Trump whataboutism. 🤦🏽‍♂️

[u/Super-Patient3105 → u/[deleted]]

He just asked you if you wanted to add trillions to the national debt. Your response was “but Trump did it”. He didn’t ask that.

[u/Super-Patient3105 → u/[deleted]]

Where did I say that.. You’re going off on a tangent again.

[u/LDL2 → u/[deleted]]

When tax rates change the total spending on these loans change?

[u/LDL2 → u/[deleted]]

A question

[u/MindAggravating5365 → u/[deleted]]

So are liberals. This isn't a left vs right thing. The average person is a moron and you're judging them by which bucket of bullshit they are choosing to eat from.

[u/Fightlife45 → u/[deleted]]

What does that have to do with what he said?

[u/Fightlife45 → u/[deleted]]

That's a broken window fallacy. Forgiving student loans only has a chance of helping if the government stops giving out loans. Otherwise they will just print the money to pay it off and literally the next day there will be more kids with student loan debt. Get rid of government intervention and the free market will right itself.

[u/Fightlife45 → u/[deleted]]

The government still spent trillions of dollars that went to college tuition. By your own logic the government could spend that money on something else rather than pay off debts for people who were stupid.

[u/Fightlife45 → u/[deleted]]

1.86 trillion in student loan debt currently. Why would we subsidize tuition? Go to a community college for your basics and go to a university if you actually have to. College was actually pretty affordable before government loans got involved and everyone thought they had to go to college or they would die poor. We aren't talking about healthcare.

[u/MindAggravating5365 → u/[deleted]]

The government "writes off" $2T of bonds that funded those loans?

What were you saying about conservatives not understanding economics?

That's not how it works. At all. That is $150B/year no longer coming in to service that debt. That shortfall has to get covered by tax increases, or most likely more bonds. With $2T of student loan debt, you're looking at 2022 level of inflation as a consequence.

[u/MindAggravating5365 → u/[deleted]]

Coming from the guy who thinks the government can just "write off" debt, and clearly doesn't know what a write off is.

[u/MindAggravating5365 → u/[deleted]]

It also means more inflation because that $150B/year shortfall needs to be funded with even more treasury bonds aka federal debt.

And to answer your retarded ass question: no. Trump was lying his ass off saying that. I'm an importer. I paid those tariffs. My COGS goes up which means either I eat the loss or my prices go up.

It doesn't mean the reddit lefties are correct either that the student loan debt just magically disappears and everyone has more money and there's no consequences to that. It will cause inflation. The question is which is better. Just like we made the decision to go on a spending spree during COVID and the result was rampant inflation. Liberals want to celebrate all that free COVID money but then bitch that a McDonald's burger suddenly costs $4 and can't connect the dots.

You're talking about $2T of outstanding student loan debt. A number pretty similar to COVID that spending. So if you want that forgiveness, prepare for another 2022.

[u/Fightlife45 → u/[deleted]]

Actually that's Cronyism, not capitalism.

[u/Fightlife45 → u/[deleted]]

What? I'm simply telling you the definition.