The moment someone's student loans are cancelled by this atrocity, I hereby volunteer to be 'lead plaintiff' in the class action lawsuit to claw back all the student loans I already paid off. WITH INTEREST.
I paid mine off in two years by sacrificing my quality of life for those 2 years. Living at home. Not buying a car. Not eating out. Not saving for a house down payment. I concur with your statement.
It's not surprising to see how many of the good responsible conservatives who paid back their student loans are gnashing their teeth over the possibility that someone, somewhere, might be freed from debt-slavery.
But what about me? What about we poor rich kids who never had to borrow so much as a dime to pay for college? Isn't it even more unfair that we a) had to pay ridiculously inflated prices because all those nasty little poor people were allowed to spend someone else's money, and, b) we weren't given any financial aid grants and were forced to pay the full retail price for the mere crime of having lots of money?
All right, I'm exaggerating. We didn't actually pay for school. Our daddies did. See, that right there, that's grit, that's what that is. The Boomers are right. Just stop whining and do what I did. It wasn't hard at all.
But it's still unfair! How will WE benefit from a student loan debt jubilee? Why isn't anyone thinking about ME and MY compensation? I mean, how can I possibly benefit from the housing market not completely collapsing because 45 million of the most educated people in America can't qualify for a mortgage? What good is it to me if 45 million people suddenly have the ability to save money for the first time in their lives? I mean, it's not as if savings = investment, or that I is a core component of Gross Domestic Product, right?
NOPE! If you took out a loan YOU REPAY THE LOAN! You totally miss the point. If you took out a loan, YOU placed YOURSELF in debt-slavery! Grit? If you borrowed money as a LOAN REPLAY THE LOAN! It's really not complicated, YOU took the loan out, NOT THE AMERICAN TAX PAYER on YOUR behalf! Repay your loan and stop being a little sissy expecting handouts!
See my reply to Little "MathDoesntAddUp" They failed to read the terms, don't like it now and want the taxpayers to bail them out. Meanwhile, others that signed similar loans have repaid with their own hard work early. YEP! Sucks to SUCK indeed!
You know nothing about how daily compounding interest rates work, and it shows. Stick to something you're good at little guy, like sucking the dicks of a government that continues to fuck its people.
LOL! Man, you sure do assume a lot of things you obviously know NOTHING about. It's ok little one. Let your big feelings out. You'll feel better! LOL!!!
The stupid is so fucking strong with some of you, that I can't...
It's not the fucking LOAN that is killing people; it is the fucking predatory DAILY COMPOUNDING INTEREST RATES. Do you understand how daily compounding interest rates work?
No one is asking your broke ass for a handout; people are asking for the removal of the ability of these banks to collect interest rates on taxpayer-funded education loans. Is that clear for you, army dog? Or do I need to break it down to something a bit more your style and you mfers have the nerve to call us crayon eaters.
LOL! Triggered little lefty, signed a loan without reading the fine print now wants a bailout because he was STUPID! Yep, Banks suck, Yep, They are predatory! But they didn't change the rules after you signed your loan did they? You blew it. You signed a contract without understanding the terms and want the US tax dollars to bail you pathetic little ass out! Too funny! BTW, not even close to "broke"! Pay up deadbeat! Your stupidity kills me! Thanks for the laugh!
LOL! (love how these two clowns are downvoting everyone that paid off their loans!)
Lefty? No mother fucker, I'm a pissed-off Marine that doesn't believe that loan servicers should be allowed to bend young people the fuck over. I guess you got bent over plenty in your days in the army, huh, doc?
You ain't paid off shit for me you broke mother fucker.
Oh he BIG MAD NOW!! Do you have a student loan you can't pay off? Serious question otherwise this convo is a moot point. If you do then sorry dummy, you should have read the fine print. Typical lefty, resorts to name calling instead of debating the facts. Sorry your feelings are hurt.
I deleted my last post; I almost let my PTSD get the better of me.
Typical lefty.... bro you started with the name calling, tf is you even talking about? Your boyfriend been skull fucking you too much?
All your Dumb ass needed to do was scroll down a bit more, and you would see I still have roughly 70 more payments to make on my student loans, and they're forgiven. I've paid on my shit faithfully for YEARS—every month.
Seems that the Army only taught you how to be a dumbass, they damn sure didn't teach you how to calculate compounding daily interest or how shit really works.
I earned two BAs, 2 MAs, and an Ed.D. and all of it was paid for by my labor. I came from low rent housing after my dad walked away when I was two, and my mom never applied for welfare even though others in our circle did. She taught me hard work and paying your own way. And kid that feels it’s alright for someone to pay their way, even the society says they’re adults, will never have my respect.
That’s great buddy good for you. Too bad the system doesn’t work that way anymore.
An entire system taking away financial literacy classes then telling 3/4 generations of kids that they won’t become anything in life unless they take out $100,000 minimum in student loans.
Promising said kids that they will become successful immediately after college. Then come to find out those jobs aren’t there.
And lets say you do find a job in your field. And you start paying your loans back. Over the course of 10-15 years you find that the interest on the loan made the loan even higher than what you took out.
The student loan system was designed to be predatory.
Nobody is calling for car loan forgiveness or mortgage forgiveness. Or even small business loan forgiveness.
The entire student loan system is rotten to begin with.
Now is the solution for the taxpayer to bare the burden? No. Similar to how we shouldn’t bail out the airlines. But the government is never going to be able to collect all that money back. They can seize the assets of the universities that knowingly inflate their tuition costs for the simple fact they want the subsidies but good luck trying to collect on this debt.
And if we really are going to a new currency or a new government, this whole debacle won’t even matter
Exactly, I'm 41 and still paying my wife's and my student loans off (at 8% albeit). While there may be exceptions as the gentleman above (Berlin); it is frustrating that we have had to pay while others do not.
Furthermore, anything that is free you don't really ever know the true value of it. Because we had to pay our way def gives us a different appreciation than someone who's loans were forgiven.
I'm a little skeptical as to how this would go through but it would be nice to see it happen. Loan forgiveness was a contributing factor to inflation we are currently trying to digest (on top of all the rounds of stimulus checks)
I have a Bachelor and a Master. I took out a total of 78k in loans, paid faithfully every month, have paid faithfully every month, and now I owe over 110k... the interest is what kills people, not the payments.
I only have to make roughly 70 more payments, and my loans will be completely forgiven, do I think that is right? Hell no. But at the same time, it's not right that these loan servicers are getting rich off of what amounts to our tax dollars to begin with.
I pay my rent no problem. I pay my car bill (which sucks cuz its only cuz I was in an accident and had to get a new one). I pay my utilities. Nobody here is calling for car loan cancellation. We get a near immediate return on our investment and we KNOW how much we’re paying at the end of it all.
All the student loan bs is insane. And colleges know damn well half their degrees aren’t worth even $10,000 let alone $50,000
I wrote an actual Bill on Policies for People that would take care of the student loan crisis... the issue is getting one of our useless ass lawmakers to put it forward.
A BILL
To amend the Higher Education Act of 1965 to eliminate interest charges on federal student loans and to provide relief for existing borrowers.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Student Loan Interest Elimination Act of 2024”.
SECTION 2. FINDINGS.
Congress finds the following:
(1) The total outstanding student loan debt in the United States exceeds $1.7 trillion.
(2) The average student loan borrower graduates with approximately $37,000 in debt.
(3) Interest accumulation on student loans significantly increases the total amount borrowers must repay, often resulting in loan balances that grow larger despite regular payments.
(4) Student loan debt disproportionately affects low-income and minority borrowers, contributing to wealth inequality.
(5) High student loan payments prevent many Americans from purchasing homes, starting businesses, saving for retirement, or participating fully in the economy.
(6) The current system of charging interest on student loans creates a significant barrier to economic mobility and financial stability for millions of Americans.
SECTION 3. ELIMINATION OF INTEREST ON FEDERAL STUDENT LOANS.
(a) IN GENERAL.—Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e) is amended by adding at the end the following:
"(r) ELIMINATION OF INTEREST.—
"(1) Notwithstanding any other provision of this Act, effective immediately upon enactment, the Secretary shall not charge interest on any loan made under this part.
"(2) For loans made prior to the date of enactment of this subsection, any outstanding interest shall be—
"(A) immediately frozen upon enactment;
"(B) segregated from the principal balance; and
"(C) forgiven upon completion of 24 consecutive, on-time monthly payments.
(b) CONFORMING AMENDMENTS.—
(1) All references to interest rates in the Higher Education Act of 1965 shall be interpreted as requiring a zero percent interest rate for federal student loans.
(2) The Secretary shall update all loan documentation, materials, and systems to reflect the elimination of interest charges.
SECTION 4. BORROWER RELIEF AND IMPLEMENTATION.
(a) BORROWER NOTIFICATION.—
(1) Within 30 days of enactment, the Secretary shall notify all current federal student loan borrowers of—
(A) the elimination of interest charges on their loans;
(B) the segregation of existing interest from principal; and
(C) the requirements for interest forgiveness.
(b) SERVICER REQUIREMENTS.—
(1) Loan servicers shall—
(A) immediately cease charging interest on all federal student loans;
(B) update their systems within 60 days to reflect the changes required by this Act;
(C) provide updated loan statements showing separate principal and legacy interest amounts; and
(D) implement tracking systems for the 24-month interest forgiveness program.
(c) BORROWER PROTECTIONS.—
(1) No borrower shall be required to make payments on segregated interest until completing the 24-month program.
(2) Any amounts paid toward interest during the implementation period shall be credited to principal.
(3) Borrowers in default shall be eligible for interest elimination upon entering a rehabilitation program.
SECTION 5. FUNDING AND OFFSET PROVISIONS.
(a) AUTHORIZATION OF APPROPRIATIONS.—
(1) There are authorized to be appropriated such sums as may be necessary to carry out this Act.
(2) The Secretary shall submit annual reports to Congress detailing the costs associated with interest elimination.
(b) OFFSET.—
(1) The Secretary of the Treasury shall conduct a study identifying potential revenue sources to offset the cost of interest elimination, including but not limited to:
(A) Financial transaction taxes
(B) Corporate tax reform
(C) Wealth taxes
(D) Reduced administrative costs from simplified loan servicing
SECTION 6. EFFECTIVE DATE.
This Act shall take effect immediately upon enactment.
SECTION-BY-SECTION ANALYSIS
Benefits and Rationale:
Immediate Financial Relief
Eliminates ongoing interest accumulation on all federal student loans
Provides a path to forgiveness of existing interest through consistent payment
Reduces monthly payment amounts for millions of borrowers
Prevents loan balances from growing due to interest capitalization
Economic Stimulus
Increases disposable income for approximately 45 million borrowers
Enables increased consumer spending and investment
Facilitates home ownership and business formation
Improves retirement savings capacity
Stimulates job creation through increased economic activity
Social Equity
Reduces the disproportionate impact of student debt on low-income borrowers
Narrows the racial wealth gap
Improves social mobility
Makes higher education more accessible and affordable
Simplified Loan Servicing
Reduces administrative complexity
Decreases servicing costs
Improves borrower understanding of loan terms
Reduces errors and disputes
Educational Access
Removes financial barriers to higher education
Encourages pursuit of public service careers
Reduces dropout rates due to financial stress
Promotes workforce development
Mental Health Benefits
Reduces stress and anxiety related to growing debt burdens
Improves overall well-being of borrowers
Enables better work-life balance
Reduces depression and other mental health impacts
Family Formation
Enables younger Americans to start families earlier
Improves ability to save for children’s education
Facilitates multi-generational wealth building
Supports housing stability for families
Market Effects
Increases small business formation
Improves housing market participation
Enables greater workforce mobility
Stimulates innovation and entrepreneurship
Fiscal Responsibility
Reduces default rates
Improves loan repayment rates
Decreases collection costs
Simplifies budget planning for borrowers
Long-term Economic Growth
Increases human capital investment
Improves labor market efficiency
Supports innovation and productivity
Strengthens middle class growth
Implementation Timeline:
Phase 1: Immediate Implementation (0-30 days)
Interest charges cease on all federal student loans
Borrower notification process begins
Servicer system updates initiated
Phase 2: System Updates (31-60 days)
Loan servicer systems fully updated
New statement formats implemented
Interest segregation completed
Phase 3: Interest Forgiveness Program (Months 3-24)
Tracking of consecutive payments begins
Interest forgiveness process implemented
Progress reporting system established
Phase 4: Long-term Monitoring (Ongoing)
Cost assessment and reporting
Economic impact studies
Program effectiveness evaluation
Conclusion:
The Student Loan Interest Elimination Act represents a transformative approach to addressing the student debt crisis while maintaining the principle of loan repayment. By eliminating interest charges while preserving the obligation to repay principal, this legislation strikes a balance between providing necessary relief to borrowers and maintaining fiscal responsibility.
The Act’s implementation is designed to provide immediate relief while establishing a sustainable long-term solution to the student debt crisis. Through careful planning and phased implementation, the legislation ensures that both borrowers and loan servicers can adapt to the new system while maximizing the economic and social benefits of interest elimination.
The combination of immediate interest elimination and a path to legacy interest forgiveness provides both instant relief and an incentive for consistent loan repayment. This approach is expected to improve repayment rates while significantly reducing the financial burden on borrowers, creating positive ripple effects throughout the economy.
That’s it; that’s my Bill to fix student loans completely. You shouldn’t have to pay interest to these loan servicers for borrowing money from the government. We already pay out the rear end for taxes, and now, students are bent over and getting destroyed by compounding daily interest rates.
No bud, it can't be done that way any longer. For what you paid for your 2 BAs, 2MAs and an ED.D, you might get 1 Bachelors if you're lucky and that's with going to community college. The education system is so fucked that no one can afford it any longer.
Thanks Math appears to be the case. Still stand by that comment in a respectful way. Just not possible with today's cost of living, barriers of entry etc. Suppose I'll just have to eat the down vote
No, you absolutely do not. Not unless they're living with mommy and daddy, and not paying bills. Because 3 credit hours alone is over $1300, that's $1300 per class... That doesn't include books, technology or lab fees.
It’s funny how all of you are criticizing me so much even though I twice put in comments that I know kids who are doing it, and NONE OF YOU asked me how they are doing it. I’m through debating people who still choose to live in the dark.
I'm not criticizing you at all. I'm telling you, the math doesn't add up. Something I am good at is math.
$1300 per 3-credit class, and the average semester is 12-15 credits. That's
$5,200 to $6,500 just for the class; again, it doesn't include books; let's go ahead and add another $700 for books, another $60 for lab fees PER credit hour, and $40 for technology fees per credit hour, then there are other miscellaneous fees.
That's $10,000 a semester. The average college year is two semesters, so double that. $20,000 for the year.
That's IF a student is living with their parents and not paying any other bills. If they are living on campus, then add another $3-$5000 a semester.
Let's say they work part-time jobs and live with their parents.
Let's say they make $14 an hour x 30 hours a week. That's $1680 a month before taxes... after taxes, they bring home $1350, which doesn't even pay for one class with all of the added fees.
I don't live in the dark; I live in reality.
You can thumbs-down all you want, it doesn't change the fact that you're lying and you know it.
Again, glad to hear that. Doesn’t change anything I said about the entire system being predatory on young kids who don’t know what they’re signing up for
They’re told the same thing. I’m not saying we don’t have control in some sense but the fact remains that we are conditioned to go to college in fear of not making it in life only to be enslaved to debt in just another form.
There’s been a lot of posts and comments here on GAW that college is not necessary except for a few professions. Most endorse trade schools. Our purpose here is to get people to think for themselves.
Unpopular opinion here - there should be some way to discharge student loan debt in bankruptcy. Debtors prison was a concept abolished a long time ago in most Anglo-Saxon countries.
Usury used to be illegal in medieval europe for a reason.
The institutions that sold these debts to dumb kids need to be liquidated and long term reforms made to the system to prevent this from ever happening again. The number of higher education institutions needs to be reduced, the entry requirements significantly increased and the resources diverted to more vocational training and shorter courses which leave people with actual skills they can pay for in an affordable manner.
If you go in the Airforce or the Navy they can probably train you in any number of technical subjects in 1-2 years that would take you 3-6 years in the civilian world. This kind of training needs to be widely available to the civilian population.
When you have a declining population you need to increase the efficiency and capability of your labour pool, not fill their heads with marxist slop, indebt them for life and teach them nothing useful.
Student loans are a problem created by the federal government and made worse by Obama.
People could pay their way by working summer jobs and part-time during the school year.
Then the government started backing student loans, so the colleges could just keep raising tuition. Can't afford it? Just get a student loan! Many (most?) loans were from private banks, and if the borrower defaulted the government would step in to pay back the loan. But borrowers could still escape through statute of limitations, usually 7ish years, and the loan would be gone.
Then Obama took over the student loan business with the Obamacare Act. Wait, wasn't that about healthcare? Partly, but it was a full takeover of the student loan business. Now all student loans had to come from the Department of Education, and they can never be discharged through statute of limitations, bankruptcy, etc. They will even take your passport if you fail to pay.
What's the solution?
We have to get back to where we were before. No government involvement in student loans, and any private loans can be discharged in bankruptcy. That means sky high interest rates in the short term. But then if kids stop going to college, because the tuition is crazy and the interest rates on private loans are crazy, the colleges will have to lower tuition or go bust.
How do we get there? I'm not sure. On one hand it's unfair to have the taxpayers foot the bill for existing loans. On the other hand, there are plenty of kids who just got trapped in this mess of the government's making. Some kind of compromise is required.
The biggest issue with the amount of time it takes to get a college degree is they force you to take BS classes for 2 years before you actually start on your core classes.
This is for no other reason than to fleece even more money out of you and provide jobs to liberal professors that would otherwise be unemployable.
Public school systems removed civics classes and shop classes for a reason.
Yeah. In Britain and many European countries this is not a thing. When I did computer science at a 3rd rate university I would have 4 classes a term just within the field of computer science. You're right - its a total scam.
Our government, after being run by fat cats wanting only good for themselves, needs to get back to passing laws instead of running the country on executive orders-meant only for the executive branch-not the entire country!
I dunno man. I never believed this bribe was going to come through but in Trumps first term I quit my job to go back to school for a more purposeful career.
And then the economy did what it did and I haven't paid a cent back yet.
I agree this bribe for votes was bogus. But colleges are government instutions. I am hoping he does do some kind of correcting for student loans more aligned with common sense and less from profiteering.
In addition to some of the other amazing suggestions I think a testing option for credit should be mandatory. Yes there is Clep but I mean more as a skill assessment for equivalent degree. You ranking would based on skills to and that certification must be recognized if this is to work. This would incentivize universities to compete based on skills provided. This also removes the brainwashing effect in various industries. In truth I think most industries would welcome this.Many of us have had to clean up after the highly educated ,letters after their name, set couldn’t perform in real situations. This might also lower university cost as well as provide a pathway with minimum expense.
The moment someone's student loans are cancelled by this atrocity, I hereby volunteer to be 'lead plaintiff' in the class action lawsuit to claw back all the student loans I already paid off. WITH INTEREST.
I paid mine off in two years by sacrificing my quality of life for those 2 years. Living at home. Not buying a car. Not eating out. Not saving for a house down payment. I concur with your statement.
It's not surprising to see how many of the good responsible conservatives who paid back their student loans are gnashing their teeth over the possibility that someone, somewhere, might be freed from debt-slavery.
But what about me? What about we poor rich kids who never had to borrow so much as a dime to pay for college? Isn't it even more unfair that we a) had to pay ridiculously inflated prices because all those nasty little poor people were allowed to spend someone else's money, and, b) we weren't given any financial aid grants and were forced to pay the full retail price for the mere crime of having lots of money?
All right, I'm exaggerating. We didn't actually pay for school. Our daddies did. See, that right there, that's grit, that's what that is. The Boomers are right. Just stop whining and do what I did. It wasn't hard at all.
But it's still unfair! How will WE benefit from a student loan debt jubilee? Why isn't anyone thinking about ME and MY compensation? I mean, how can I possibly benefit from the housing market not completely collapsing because 45 million of the most educated people in America can't qualify for a mortgage? What good is it to me if 45 million people suddenly have the ability to save money for the first time in their lives? I mean, it's not as if savings = investment, or that I is a core component of Gross Domestic Product, right?
Why won't you shed a tear for me?
NOPE! If you took out a loan YOU REPAY THE LOAN! You totally miss the point. If you took out a loan, YOU placed YOURSELF in debt-slavery! Grit? If you borrowed money as a LOAN REPLAY THE LOAN! It's really not complicated, YOU took the loan out, NOT THE AMERICAN TAX PAYER on YOUR behalf! Repay your loan and stop being a little sissy expecting handouts!
Yeah, who cares how badly they were tricked?
Sucks to suck
See my reply to Little "MathDoesntAddUp" They failed to read the terms, don't like it now and want the taxpayers to bail them out. Meanwhile, others that signed similar loans have repaid with their own hard work early. YEP! Sucks to SUCK indeed!
Yes, blame the con artists' victims, that will totally help.
The time to respond was 20 hours ago. No one else is reading this.
Sorry clown, I have other more important things to do but I find it entertaining to school you!
Son, all you are is a troll. You couldn't school a kid, much less any of us here.
You know nothing about how daily compounding interest rates work, and it shows. Stick to something you're good at little guy, like sucking the dicks of a government that continues to fuck its people.
LOL! Man, you sure do assume a lot of things you obviously know NOTHING about. It's ok little one. Let your big feelings out. You'll feel better! LOL!!!
I know quite a bit about what the army does to braindead bitches like you.
The stupid is so fucking strong with some of you, that I can't...
It's not the fucking LOAN that is killing people; it is the fucking predatory DAILY COMPOUNDING INTEREST RATES. Do you understand how daily compounding interest rates work?
No one is asking your broke ass for a handout; people are asking for the removal of the ability of these banks to collect interest rates on taxpayer-funded education loans. Is that clear for you, army dog? Or do I need to break it down to something a bit more your style and you mfers have the nerve to call us crayon eaters.
LOL! Triggered little lefty, signed a loan without reading the fine print now wants a bailout because he was STUPID! Yep, Banks suck, Yep, They are predatory! But they didn't change the rules after you signed your loan did they? You blew it. You signed a contract without understanding the terms and want the US tax dollars to bail you pathetic little ass out! Too funny! BTW, not even close to "broke"! Pay up deadbeat! Your stupidity kills me! Thanks for the laugh! LOL! (love how these two clowns are downvoting everyone that paid off their loans!)
Lefty? No mother fucker, I'm a pissed-off Marine that doesn't believe that loan servicers should be allowed to bend young people the fuck over. I guess you got bent over plenty in your days in the army, huh, doc?
You ain't paid off shit for me you broke mother fucker.
Oh he BIG MAD NOW!! Do you have a student loan you can't pay off? Serious question otherwise this convo is a moot point. If you do then sorry dummy, you should have read the fine print. Typical lefty, resorts to name calling instead of debating the facts. Sorry your feelings are hurt.
I deleted my last post; I almost let my PTSD get the better of me.
Typical lefty.... bro you started with the name calling, tf is you even talking about? Your boyfriend been skull fucking you too much?
All your Dumb ass needed to do was scroll down a bit more, and you would see I still have roughly 70 more payments to make on my student loans, and they're forgiven. I've paid on my shit faithfully for YEARS—every month.
Seems that the Army only taught you how to be a dumbass, they damn sure didn't teach you how to calculate compounding daily interest or how shit really works.
I earned two BAs, 2 MAs, and an Ed.D. and all of it was paid for by my labor. I came from low rent housing after my dad walked away when I was two, and my mom never applied for welfare even though others in our circle did. She taught me hard work and paying your own way. And kid that feels it’s alright for someone to pay their way, even the society says they’re adults, will never have my respect.
That’s great buddy good for you. Too bad the system doesn’t work that way anymore.
An entire system taking away financial literacy classes then telling 3/4 generations of kids that they won’t become anything in life unless they take out $100,000 minimum in student loans.
Promising said kids that they will become successful immediately after college. Then come to find out those jobs aren’t there.
And lets say you do find a job in your field. And you start paying your loans back. Over the course of 10-15 years you find that the interest on the loan made the loan even higher than what you took out.
The student loan system was designed to be predatory.
Nobody is calling for car loan forgiveness or mortgage forgiveness. Or even small business loan forgiveness.
The entire student loan system is rotten to begin with.
Now is the solution for the taxpayer to bare the burden? No. Similar to how we shouldn’t bail out the airlines. But the government is never going to be able to collect all that money back. They can seize the assets of the universities that knowingly inflate their tuition costs for the simple fact they want the subsidies but good luck trying to collect on this debt.
And if we really are going to a new currency or a new government, this whole debacle won’t even matter
Exactly, I'm 41 and still paying my wife's and my student loans off (at 8% albeit). While there may be exceptions as the gentleman above (Berlin); it is frustrating that we have had to pay while others do not.
Furthermore, anything that is free you don't really ever know the true value of it. Because we had to pay our way def gives us a different appreciation than someone who's loans were forgiven.
I'm a little skeptical as to how this would go through but it would be nice to see it happen. Loan forgiveness was a contributing factor to inflation we are currently trying to digest (on top of all the rounds of stimulus checks)
I have a Bachelor and a Master. I took out a total of 78k in loans, paid faithfully every month, have paid faithfully every month, and now I owe over 110k... the interest is what kills people, not the payments.
I only have to make roughly 70 more payments, and my loans will be completely forgiven, do I think that is right? Hell no. But at the same time, it's not right that these loan servicers are getting rich off of what amounts to our tax dollars to begin with.
YES! Exactly! I'm sick of the victim blaming with this corrupt system.
I pay my rent no problem. I pay my car bill (which sucks cuz its only cuz I was in an accident and had to get a new one). I pay my utilities. Nobody here is calling for car loan cancellation. We get a near immediate return on our investment and we KNOW how much we’re paying at the end of it all.
All the student loan bs is insane. And colleges know damn well half their degrees aren’t worth even $10,000 let alone $50,000
This right here.
I wrote an actual Bill on Policies for People that would take care of the student loan crisis... the issue is getting one of our useless ass lawmakers to put it forward.
A BILL
To amend the Higher Education Act of 1965 to eliminate interest charges on federal student loans and to provide relief for existing borrowers.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Student Loan Interest Elimination Act of 2024”.
SECTION 2. FINDINGS.
Congress finds the following:
(1) The total outstanding student loan debt in the United States exceeds $1.7 trillion.
(2) The average student loan borrower graduates with approximately $37,000 in debt.
(3) Interest accumulation on student loans significantly increases the total amount borrowers must repay, often resulting in loan balances that grow larger despite regular payments.
(4) Student loan debt disproportionately affects low-income and minority borrowers, contributing to wealth inequality.
(5) High student loan payments prevent many Americans from purchasing homes, starting businesses, saving for retirement, or participating fully in the economy.
(6) The current system of charging interest on student loans creates a significant barrier to economic mobility and financial stability for millions of Americans.
SECTION 3. ELIMINATION OF INTEREST ON FEDERAL STUDENT LOANS.
(a) IN GENERAL.—Section 455 of the Higher Education Act of 1965 (20 U.S.C. 1087e) is amended by adding at the end the following:
"(r) ELIMINATION OF INTEREST.— "(1) Notwithstanding any other provision of this Act, effective immediately upon enactment, the Secretary shall not charge interest on any loan made under this part. "(2) For loans made prior to the date of enactment of this subsection, any outstanding interest shall be— "(A) immediately frozen upon enactment; "(B) segregated from the principal balance; and "(C) forgiven upon completion of 24 consecutive, on-time monthly payments.
(b) CONFORMING AMENDMENTS.— (1) All references to interest rates in the Higher Education Act of 1965 shall be interpreted as requiring a zero percent interest rate for federal student loans. (2) The Secretary shall update all loan documentation, materials, and systems to reflect the elimination of interest charges.
SECTION 4. BORROWER RELIEF AND IMPLEMENTATION.
(a) BORROWER NOTIFICATION.— (1) Within 30 days of enactment, the Secretary shall notify all current federal student loan borrowers of— (A) the elimination of interest charges on their loans; (B) the segregation of existing interest from principal; and (C) the requirements for interest forgiveness.
(b) SERVICER REQUIREMENTS.— (1) Loan servicers shall— (A) immediately cease charging interest on all federal student loans; (B) update their systems within 60 days to reflect the changes required by this Act; (C) provide updated loan statements showing separate principal and legacy interest amounts; and (D) implement tracking systems for the 24-month interest forgiveness program.
(c) BORROWER PROTECTIONS.— (1) No borrower shall be required to make payments on segregated interest until completing the 24-month program. (2) Any amounts paid toward interest during the implementation period shall be credited to principal. (3) Borrowers in default shall be eligible for interest elimination upon entering a rehabilitation program.
SECTION 5. FUNDING AND OFFSET PROVISIONS.
(a) AUTHORIZATION OF APPROPRIATIONS.— (1) There are authorized to be appropriated such sums as may be necessary to carry out this Act. (2) The Secretary shall submit annual reports to Congress detailing the costs associated with interest elimination.
(b) OFFSET.— (1) The Secretary of the Treasury shall conduct a study identifying potential revenue sources to offset the cost of interest elimination, including but not limited to: (A) Financial transaction taxes (B) Corporate tax reform (C) Wealth taxes (D) Reduced administrative costs from simplified loan servicing
SECTION 6. EFFECTIVE DATE.
This Act shall take effect immediately upon enactment.
SECTION-BY-SECTION ANALYSIS
Benefits and Rationale:
Immediate Financial Relief Eliminates ongoing interest accumulation on all federal student loans Provides a path to forgiveness of existing interest through consistent payment Reduces monthly payment amounts for millions of borrowers Prevents loan balances from growing due to interest capitalization Economic Stimulus Increases disposable income for approximately 45 million borrowers Enables increased consumer spending and investment Facilitates home ownership and business formation Improves retirement savings capacity Stimulates job creation through increased economic activity Social Equity Reduces the disproportionate impact of student debt on low-income borrowers Narrows the racial wealth gap Improves social mobility Makes higher education more accessible and affordable Simplified Loan Servicing Reduces administrative complexity Decreases servicing costs Improves borrower understanding of loan terms Reduces errors and disputes Educational Access Removes financial barriers to higher education Encourages pursuit of public service careers Reduces dropout rates due to financial stress Promotes workforce development Mental Health Benefits Reduces stress and anxiety related to growing debt burdens Improves overall well-being of borrowers Enables better work-life balance Reduces depression and other mental health impacts Family Formation Enables younger Americans to start families earlier Improves ability to save for children’s education Facilitates multi-generational wealth building Supports housing stability for families Market Effects Increases small business formation Improves housing market participation Enables greater workforce mobility Stimulates innovation and entrepreneurship Fiscal Responsibility Reduces default rates Improves loan repayment rates Decreases collection costs Simplifies budget planning for borrowers Long-term Economic Growth Increases human capital investment Improves labor market efficiency Supports innovation and productivity Strengthens middle class growth Implementation Timeline:
Phase 1: Immediate Implementation (0-30 days)
Interest charges cease on all federal student loans Borrower notification process begins Servicer system updates initiated Phase 2: System Updates (31-60 days)
Loan servicer systems fully updated New statement formats implemented Interest segregation completed Phase 3: Interest Forgiveness Program (Months 3-24)
Tracking of consecutive payments begins Interest forgiveness process implemented Progress reporting system established Phase 4: Long-term Monitoring (Ongoing)
Cost assessment and reporting Economic impact studies Program effectiveness evaluation Conclusion:
The Student Loan Interest Elimination Act represents a transformative approach to addressing the student debt crisis while maintaining the principle of loan repayment. By eliminating interest charges while preserving the obligation to repay principal, this legislation strikes a balance between providing necessary relief to borrowers and maintaining fiscal responsibility.
The Act’s implementation is designed to provide immediate relief while establishing a sustainable long-term solution to the student debt crisis. Through careful planning and phased implementation, the legislation ensures that both borrowers and loan servicers can adapt to the new system while maximizing the economic and social benefits of interest elimination.
The combination of immediate interest elimination and a path to legacy interest forgiveness provides both instant relief and an incentive for consistent loan repayment. This approach is expected to improve repayment rates while significantly reducing the financial burden on borrowers, creating positive ripple effects throughout the economy.
That’s it; that’s my Bill to fix student loans completely. You shouldn’t have to pay interest to these loan servicers for borrowing money from the government. We already pay out the rear end for taxes, and now, students are bent over and getting destroyed by compounding daily interest rates.
It can be done today and I have seen kids who work hard and sacrifice now for a better life later and never take out a loan.
No bud, it can't be done that way any longer. For what you paid for your 2 BAs, 2MAs and an ED.D, you might get 1 Bachelors if you're lucky and that's with going to community college. The education system is so fucked that no one can afford it any longer.
Agreed...very hard to do this today Berlin. Times have changed
He can't handle someone with a differing opinion, so he thumbs-down those who don't agree with him. Don't mind him.
Thanks Math appears to be the case. Still stand by that comment in a respectful way. Just not possible with today's cost of living, barriers of entry etc. Suppose I'll just have to eat the down vote
I have former students who are doing it.
No, you absolutely do not. Not unless they're living with mommy and daddy, and not paying bills. Because 3 credit hours alone is over $1300, that's $1300 per class... That doesn't include books, technology or lab fees.
It’s funny how all of you are criticizing me so much even though I twice put in comments that I know kids who are doing it, and NONE OF YOU asked me how they are doing it. I’m through debating people who still choose to live in the dark.
I'm not criticizing you at all. I'm telling you, the math doesn't add up. Something I am good at is math.
$1300 per 3-credit class, and the average semester is 12-15 credits. That's
$5,200 to $6,500 just for the class; again, it doesn't include books; let's go ahead and add another $700 for books, another $60 for lab fees PER credit hour, and $40 for technology fees per credit hour, then there are other miscellaneous fees.
That's $10,000 a semester. The average college year is two semesters, so double that. $20,000 for the year.
That's IF a student is living with their parents and not paying any other bills. If they are living on campus, then add another $3-$5000 a semester.
Let's say they work part-time jobs and live with their parents.
Let's say they make $14 an hour x 30 hours a week. That's $1680 a month before taxes... after taxes, they bring home $1350, which doesn't even pay for one class with all of the added fees.
I don't live in the dark; I live in reality.
You can thumbs-down all you want, it doesn't change the fact that you're lying and you know it.
Again, glad to hear that. Doesn’t change anything I said about the entire system being predatory on young kids who don’t know what they’re signing up for
That’s the time parents need to be involved.
They’re told the same thing. I’m not saying we don’t have control in some sense but the fact remains that we are conditioned to go to college in fear of not making it in life only to be enslaved to debt in just another form.
There’s been a lot of posts and comments here on GAW that college is not necessary except for a few professions. Most endorse trade schools. Our purpose here is to get people to think for themselves.
I feel like you’re either trolling or a bot at this point because i’m not talking about GAW. High school kids arent getting their education from GAW.
GAW wasn’t there in 2011 when i was told I needed to go to college.
The problem is that the system we are discussing is being pushed by academia, the literal establishment that DOESN’T want us to think for themselves.
And GAW hasn’t been around as long as the creation of government subsidies on college education
Who would downvote a comment about kids today working hard to get a degree that they pay for?
Because OP is trying to say because he was able to pay it that means anyone should be able to pay it when while that SHOULD be the case, it is not.
Unpopular opinion here - there should be some way to discharge student loan debt in bankruptcy. Debtors prison was a concept abolished a long time ago in most Anglo-Saxon countries.
Usury used to be illegal in medieval europe for a reason.
The institutions that sold these debts to dumb kids need to be liquidated and long term reforms made to the system to prevent this from ever happening again. The number of higher education institutions needs to be reduced, the entry requirements significantly increased and the resources diverted to more vocational training and shorter courses which leave people with actual skills they can pay for in an affordable manner.
If you go in the Airforce or the Navy they can probably train you in any number of technical subjects in 1-2 years that would take you 3-6 years in the civilian world. This kind of training needs to be widely available to the civilian population.
When you have a declining population you need to increase the efficiency and capability of your labour pool, not fill their heads with marxist slop, indebt them for life and teach them nothing useful.
Student loans are a problem created by the federal government and made worse by Obama.
People could pay their way by working summer jobs and part-time during the school year.
Then the government started backing student loans, so the colleges could just keep raising tuition. Can't afford it? Just get a student loan! Many (most?) loans were from private banks, and if the borrower defaulted the government would step in to pay back the loan. But borrowers could still escape through statute of limitations, usually 7ish years, and the loan would be gone.
Then Obama took over the student loan business with the Obamacare Act. Wait, wasn't that about healthcare? Partly, but it was a full takeover of the student loan business. Now all student loans had to come from the Department of Education, and they can never be discharged through statute of limitations, bankruptcy, etc. They will even take your passport if you fail to pay.
What's the solution?
We have to get back to where we were before. No government involvement in student loans, and any private loans can be discharged in bankruptcy. That means sky high interest rates in the short term. But then if kids stop going to college, because the tuition is crazy and the interest rates on private loans are crazy, the colleges will have to lower tuition or go bust.
How do we get there? I'm not sure. On one hand it's unfair to have the taxpayers foot the bill for existing loans. On the other hand, there are plenty of kids who just got trapped in this mess of the government's making. Some kind of compromise is required.
The biggest issue with the amount of time it takes to get a college degree is they force you to take BS classes for 2 years before you actually start on your core classes.
This is for no other reason than to fleece even more money out of you and provide jobs to liberal professors that would otherwise be unemployable.
Public school systems removed civics classes and shop classes for a reason.
Yeah. In Britain and many European countries this is not a thing. When I did computer science at a 3rd rate university I would have 4 classes a term just within the field of computer science. You're right - its a total scam.
copy and paste this everywhere
We can blame Biden for not allowing that.
Our government, after being run by fat cats wanting only good for themselves, needs to get back to passing laws instead of running the country on executive orders-meant only for the executive branch-not the entire country!
Anything with the name "Studies" should eliminated.
I dunno man. I never believed this bribe was going to come through but in Trumps first term I quit my job to go back to school for a more purposeful career.
And then the economy did what it did and I haven't paid a cent back yet.
I agree this bribe for votes was bogus. But colleges are government instutions. I am hoping he does do some kind of correcting for student loans more aligned with common sense and less from profiteering.
In addition to some of the other amazing suggestions I think a testing option for credit should be mandatory. Yes there is Clep but I mean more as a skill assessment for equivalent degree. You ranking would based on skills to and that certification must be recognized if this is to work. This would incentivize universities to compete based on skills provided. This also removes the brainwashing effect in various industries. In truth I think most industries would welcome this.Many of us have had to clean up after the highly educated ,letters after their name, set couldn’t perform in real situations. This might also lower university cost as well as provide a pathway with minimum expense.