Today I heard the U Penn Wharton got a hold of the Biden plan for student loan forgiveness. Turns out it's really over a trillion and it's just going to be tacked onto our debt . I heard a talking head on XM breaking down the plan. What we all heard was everyone with a student loan making less than $125k or $250k for a couple would get the $10k off the top and some making less get $20k off the top. That's where the $300 billion came into the equation.
However, what the plan is really doing is then going to calculate a reduced payment based on discretionary income after housing and electric and food is figured into the budget. Then if you work in any of the dozen or so preferred fields like teaching, government bureaucrats, nursing ,etc you get to qualify for this second part . They will calculate your payment based on discretionary income and if you pay on time for a decade the remainder of your loan will be forgiven.
They used a nurse for an example with $70k in student debt making $80k a year . He said using average household expenses for housing power and food the nurse's payment would be around $61 a month. The plan calculates 5% of the discretionary income would be the payment amount. The guy then says over a 10 year period the nurse would pay around $7,000 and change . Then the magic happens their remaining loan amount is gone , just wiped clean . Hence the real costs is now over $1 trillion dollars and the total paid back by the nurse is just over $7k on a $70k loan .
Now many here might think just do it . However, my beef with this thing is centered around the fact the administration used Weasley language in the COVID Bill to justify doing this through executive order . There was no debate ,no discussion in either the House or Senate . It's just wave the wand and all is good.
I am moderately open to addressing this issue but how this thing happened is just wrong . It's a trillion dollars just saddled onto our debt with no way to pay for it and no discussion on the issues . I am Joe Biden and I made it so . I wouldn't be thrilled if Trump or any Republican did it either. All bills dealing with taxation and spending must originate in the House according to the Constitution. They used open ended language and justified this under COVID relief .
This is a huge give away for people making upwards of $240,000 and it just happened without a word in Congress . I find that wrong and unacceptable. I don't care how you vote , you should also find the way this was done not right either. They were deceitful In the amount, how the plan will work,who really gets to benefit and how it would be paid for. Not a single congressman or senator got to vote for it or against it. It's only a trillion on top of $32 trillion , just add it to my tab .
However, what the plan is really doing is then going to calculate a reduced payment based on discretionary income after housing and electric and food is figured into the budget. Then if you work in any of the dozen or so preferred fields like teaching, government bureaucrats, nursing ,etc you get to qualify for this second part . They will calculate your payment based on discretionary income and if you pay on time for a decade the remainder of your loan will be forgiven.
They used a nurse for an example with $70k in student debt making $80k a year . He said using average household expenses for housing power and food the nurse's payment would be around $61 a month. The plan calculates 5% of the discretionary income would be the payment amount. The guy then says over a 10 year period the nurse would pay around $7,000 and change . Then the magic happens their remaining loan amount is gone , just wiped clean . Hence the real costs is now over $1 trillion dollars and the total paid back by the nurse is just over $7k on a $70k loan .
Now many here might think just do it . However, my beef with this thing is centered around the fact the administration used Weasley language in the COVID Bill to justify doing this through executive order . There was no debate ,no discussion in either the House or Senate . It's just wave the wand and all is good.
I am moderately open to addressing this issue but how this thing happened is just wrong . It's a trillion dollars just saddled onto our debt with no way to pay for it and no discussion on the issues . I am Joe Biden and I made it so . I wouldn't be thrilled if Trump or any Republican did it either. All bills dealing with taxation and spending must originate in the House according to the Constitution. They used open ended language and justified this under COVID relief .
This is a huge give away for people making upwards of $240,000 and it just happened without a word in Congress . I find that wrong and unacceptable. I don't care how you vote , you should also find the way this was done not right either. They were deceitful In the amount, how the plan will work,who really gets to benefit and how it would be paid for. Not a single congressman or senator got to vote for it or against it. It's only a trillion on top of $32 trillion , just add it to my tab .