I’m still on the fence on how this will be done properly. Student loans (college loans) have been poorly mismanaged for several years. Whether it be at the initial start of getting a student loan up to where you’re working or starting to work and pay off your student loan balance.
Again, what I may see happen are unintended consequences once everything has been implemented and a few years pass after everything has been said and done. What people may not understand, beforehand, that student loan forgiveness has been tried under the Clinton administration (REPAYE) – as indicated in the video above – there was a repayment plan but the remaining balance forgiven was then TAXABLE AS INCOME to you (the remaining of the loan that was forgiven):
Under Biden’s proposal for this student loan is that:
If the balance would be forgiven under Biden’s proposal, who would essentially pay for these “forgiven” student loan debt balances? Here’s where I foresee the unintended consequence – This will impact quite a bit of taxpaying Americans – in all spectrums of the taxpaying Americans – not just the high income and/or wealthy. It may not impact everyone instantly – but it will over time… and I bet the taxes on income will go back up… I could be wrong – but only time will tell.
If people remember, the Federal Government took over the student loans back in year 2010. The Federal Government was the main creditor, as of 2010, to manage the student loans. My question is, “Why was the need to do so?”