Student Loan Forgiveness

The answer depends on who gains control of the federal government in the future. As long as the Republican Party is in control, they won't do anything because student loan debt is a money maker for them. Elizabeth Warren has addressed this injustice and I believe she has a plan for forgiveness. If she gets into the White House and we have a blue Congress, it will be addressed. I can see a forgiveness plan that involves a humane and livable way that students get options for how they will deal with the debt.  I can see some outright forgiveness, some pathways to work off the debt, and that banks take some of the hit as they should. All profits for student loan debt will stop. It will be part of a package that prevents future debt by offering free tuition. 

Thank you for sharing what you see. I am feeling like such a fool for going to school! I hope other young people are at least seeing some of us who made these mistakes and are considering a different route for themselves. I know some colleges are now moving forward with free tuition. Hopefully there will be forgiveness for those of us that didn't have this option. 

Just wanted to share my own experience with student debt. I graduated undergrad with zero debt, thanks to financial aid and scholarships. Ten years or so later when I graduated grad school, I had amassed $47,000 in student loan debt. It took me almost a year to find a job in my chosen field, during which I deferred payments, but interest kept accruing. Interest was "adjustable" but generally started at 6% and I think ended up around 18% APR. Finally I started paying it back. I calculated early on that if I only ever paid the minimum payment required each month, it would take me 45 years to pay the loan back IF the interest rate didn't go up past 18%. So I always paid a little more, but I never made enough money to pay off principal chunks. At one point I had to declare bankruptcy. The loans were not deferred, I had to keep paying the minimums during that time. Were it not for a death in the family a couple of years later that afforded me a small inheritance, which I was able to direct towards that debt, I'd still be paying it.

I used to joke that I'd be paying the bill from the nursing home, and that the thrill of paying the last payment would finish me off from shock upon signing the last check.

All the schools, whether public or private have gotten so greedy. Many of them are sitting on huge endowments that if they spend at all are on things like gyms and pools and stadiums.  I too hope things change for the better on this front. Education is a basic human right.

Melissa, you followed general guidance that was the common wisdom for decades about higher education - it's an investment in your future.  You got caught in an accelerating trap. Your intentions were good. You were a victim not a fool.  That's why many progressive politicians are calling for a forgiveness program.  You deserve a way out of this mess.  We support you.  

Thank you for this!

I'm very torn on this topic. I have friends who are still, in their mid- to late 40s, dealing with the struggle to pay off their own student debt, even as they are now figuring out how to send their own kids to college. I'm not sure I believe in full, 100% eradication of student debt for every person who has it (I believe Warren's plan is actually for people whose debt is a certain percentage student loan carry-over for a certain amount of years; it isn't a plan to erase all debt from all people in all circumstances), though I agree some form of help is needed, and do believe in eradication for those who are most desperate and least likely to be able to save themselves. The problem seems to be more the predatory lending process and the crazy inflation of the costs of higher education, which is leaving people underwater and drowning.

My son is currently a college sophomore studying political science. His first choice school would have left him $300k+ in debt after four years, for an undergrad degree he couldn't really use without a grad degree on top of it. And this school has run-down dorms, no meal plan because there's no dining hall, and is in one of the most expensive cities in the country. All it would have offered him is the first impression of the name on the degree. As it is, he's at a state university paying less than $15k/year, getting nice academic money as well as athletic money. He knows he likely won't make much by working in public service, so I'm glad he was practical with his decision making, and I'm glad athletic recruitment ended up being the deciding factor so we didn't have to be the bad guy. And last year he fell in love with the school, the community around it, his teammates and professors, and found his experience to be just as rewarding as if he were at the high-end school. More reasonable choices are out there, but as long as there are parents who fight for their kids to attend these "name brand" schools with exorbitant fees, the schools will keep raising their prices because they can.

I hope the trend swings back to economically sound schools, community colleges, and trades, and the "fancy" schools get the message. I hope congress and senate flip blue and put the screws to the lenders who get rich on the backs of desperate and hopeful parents and kids.

When Elizabeth Warren talks about how much good can be done by levying a wealth tax on the richest .1% of Americans, I feel hopeful for how much it could change the world for the better. But I'm afraid the push back from those wealthy individuals so that they can hang onto their multi-millions and billions will be disgustingly greedy and solid.

Our Community Colleges recently began offering  4 year degree programs  in addition to their 2 year programs.  This is a nice option for those who can't afford a state 4 year college.    Our public state 4 year colleges offer very good scholarships if you get good grades in High School.   Housing, which is still  expensive, is basically the only expense we have had for our children.  

My eldest daughter just completed a master's program in England.  It was cheeper for her to go to the UK and get a master's then get  one here in the U.S.  She was able to get the degree in one year instead of 2 which saved a lot of money Her field of study is also rather unique and few US colleges even offer the program so it would have meant out of state tuition in addition to an extra year of study/tuition if she stayed in the U.S.  Many European nations like Germany offer free college tuition to their students.  

Something needs to happen to help people with college debt.  Even if there are scholarships, housing is  a huge expense as well and some students can't live at home because the distance is too great.  I was happy to hear some candidates say housing would need to be a consideration in their plan.  

These are all really helpful perspectives. I agree that housing costs make it even more of a challenge for people to go to school. It seems like online programs could be a relief for some students dealing with this now if they can't afford to live nearby. I transferred to a more affordable state to save on housing and commuting costs. It really made a big difference. Moving around is not always an option for everybody and living at home with family members may not be healthy depending on the situation.