More on Biden's Student Loan Plan (Page 3): Don't you think the federal government has a responsibility to be good stewards of our money?? Transferring debt to taxpayers is not a good...

FrumCA

DennyT wrote:

another dumb thought build on the premise that the federal government make loans to make. Money to spend on other things.

The rest is pure political blather. As I have said before the federal government should not be in student loan business at all. But to portray it as a pure political issue as you do is disingenuous at best.

Don't you think the federal government has a responsibility to be good stewards of our money?? Transferring debt to
taxpayers is not a good representation of this responsibility. You are correct in your observation that this is a political issue. Biden is seeking votes, and his debt cancelation program may do just that unless the SCOTUS steps in again to stop him.

DennyT Loc: Central Missouri woods

Blurryeyed wrote:

Really Denny, then why do they even charge interes... (show quote)

As I said over and over federal government should not be in the student. Loan business at all.

But you again show your tribal when you only told the part story you like.

“” 8.7 billion goes to pay for ObamaCare; $10.3 billion goes to pay down the federal debt;

and $36 billion goes to Pell Scholarship grants.

Shoots the hell out of your wrath transfer dissent.

Point was and is students are
Borrowing money. Paying imitation back and and and are being used by federal government to move cash flow in positive direction. AT NO COST to taxpayers.
So to say this cost taxpayers $400 million is a partisan lie .

Effate Loc: El Dorado Hills, Ca.

DennyT wrote:

As I said over and over federal government should... (show quote)

If your theory is true then it is a total farce for CBO to score a bill over ten years as they obviously factored in loan repayments (including interest) when computing total costs of a bill. If some of the repayment mechanisms vaporize and the costs of the legislation are still there (and truthfully were initially underestimated initially) then where does that money come from if not the taxpayer.

Blurryeyed Loc: NC Mountains.

DennyT wrote:

As I said over and over federal government should... (show quote)

You couldn't be more wrong Denny, if you loan someone money and they owe you a balance that is considered an asset on your balance sheet, if you forgive a loan to someone they have to report the amount forgiven as income and pay taxes on it. The government is no different, it does have a balance sheet and erasing a loan balance that is still outstanding is no different than spending money.

As far as Wealth Transfer goes????? Student loan forgiveness shoots a huge hole in the federal budget, who is going to make that up Denny? Taxpayers maybe? Will those electricians, plumbers and contractors be asked to pay more to help make up that hole? As you and I argue here Biden is giving 100's of billions in forgiveness to college graduates while allowing the Trump tax cuts to expire in essence asking those plumbers, electricians, and contractors to pay more in taxes.

DennyT Loc: Central Missouri woods

Effate wrote:

If your theory is true then it is a total farce for CBO to score a bill over ten years as they obviously factored in loan repayments (including interest) when computing total costs of a bill. If some of the repayment mechanisms vaporize and the costs of the legislation are still there (and truthfully were initially underestimated initially) then where does that money come from if not the taxpayer.

It means spend less !!!

DennyT Loc: Central Missouri woods

Blurryeyed wrote:

You couldn't be more wrong Denny, if you loan someone money and they owe you a balance that is considered an asset on your balance sheet, if you forgive a loan to someone they have to report the amount forgiven as income and pay taxes on it. The government is no different, it does have a balance sheet and erasing a loan balance that is still outstanding is no different than spending money.

I see nothing wrong with deleting the income from the balance sheets. What does that have to do with costing the tax payers billions. You’re bring it all to current year aren’t you??

Quote:

As far as Wealth Transfer goes????? Student loan forgiveness shoots a huge hole in the federal budget, who is going to make that up Denny? Taxpayers maybe? Will those electricians, plumbers and contractors be asked to pay more to help make up that hole? As you and I argue here Biden is giving 100's of billions in forgiveness to college graduates while allowing the Trump tax cuts to expire in essence asking those plumbers, electricians, and contractors to pay more in taxes.

One it their student loans typically go to the children and people you’re whining about and two Obama care does the same.
Third why not spend less ?
PAYGO is the law isn’t it ?

Blurryeyed Loc: NC Mountains.

DennyT wrote:

One it their student loans typically go to the children and people you’re whining about and two Obama care does the same.
Third why not spend less ?
PAYGO is the law isn’t it ?

https://budgetmodel.wharton.upenn.edu/issues/2022/8/26/biden-student-loan-forgiveness

Blurryeyed Loc: NC Mountains.

DennyT wrote:

One it their student loans typically go to the children and people you’re whining about and two Obama care does the same.
Third why not spend less ?
PAYGO is the law isn’t it ?

I have no problem with budget cuts but apparently those who rule over us do, it will never happen Denny nor will pay as you go.

Effate Loc: El Dorado Hills, Ca.

DennyT wrote:

It means spend less !!!

Agreed but that doesn’t answer the question at hand and with the philosophy of the government being all things to all people spending less doesn’t seem to be on the horizon. Where is Bill (“the era of big government is over”).

DennyT Loc: Central Missouri woods

But the answer is . It not “ costing taxpayer $400B.

DennyT Loc: Central Missouri woods

Blurryeyed wrote:

https://budgetmodel.wharton.upenn.edu/issues/2022/8/26/biden-student-loan-forgiveness

Did you read the whole report you posted

“ Debt cancellation: Individuals earning less than $125,000 (or $250,000 for families) a year will be eligible for up to $10,000 in debt cancellation. Pell Grant recipients earning less than $125,000 (or $250,000 for families) a year are eligible for up to $20,000 in debt reduction.
Forbearance: Student loan forbearance extended through December 31, 2022.
New Income-Driven Repayment (IDR): This plan proposes:
Capping monthly payments to 5% (relative to the current rate of 10% or more) of the discretionary income for undergraduate loan borrowers;
Covering the borrower’s unpaid monthly interest so that debt balances will not grow even when monthly payments are zero;
Raising the amount excluded from the calculation of discretionary income from 150% to 225% of the poverty line; and,
Forgiving loan balances after 10 years of payments, instead of 20 years, for borrowers with original loan balances of $12,000 or less.this
“

Effate Loc: El Dorado Hills, Ca.

DennyT wrote:

But the answer is . It not “ costing taxpayer $400B.

You are not telling me where the money will come from for budget items already passed that when they were marked up and the CBO considered the repayments a monetary stream for funding other (or a portion of) programs and the costs to run those programs didn’t go away.

Blurryeyed Loc: NC Mountains.

DennyT wrote:

Did you read the whole report you posted br br “ ... (show quote)

Why should my children be required to repay the debt taken on by others Denny, I am sure that there are plenty of elderly and low income home owners who are having difficulty with their federally insured home loans, should we absorb all their debt as well? I would argue that they are probably more deserving of the financial help.

DennyT Loc: Central Missouri woods

Effate wrote:

You are not telling me where the money will come from for budget items already passed that when they were marked up and the CBO considered the repayments a monetary stream for funding other (or a portion of) programs and the costs to run those programs didn’t go away.

It did NOT come from any where because it never was. Only in accountants minds.

Effate Loc: El Dorado Hills, Ca.

DennyT wrote:

It did NOT come from any where because it never was. Only in accountants minds.

I don’t think you understand what I am asking or you do and don’t want to answer. When congress ( a body you constantly refer to regarding the budget process) is attempting to sell a bill they mark it up and give the CBOs some hypothetical means of funding or usually a way to mitigate the ultimate price tag. So, as was previously stated (I don’t know, someone else mentioned it) if, for instance, when selling Obama care they listed student loan repayment as part of the mark up and that funding source goes away the necessity to fund Obama care is still in place. Who or what will fund it? Again, I don’t know ultimately how the student loan repayment was committed but assuredly committed it was.