Student loan debt forgiveness

My son works for a guy who owns a medium sized company (Electrician) and he was saying he took out a hundred thousand dollar loan to buy a few trucks and expand his business, he is still paying the loan off and thinks it would be awesome if his loan was forgiven. He didn't go to college so he has no student debt, but he still has debt... what do you think?

This page is a permanent link to the reply below and its nested replies. See all post replies »

SunshineGirl · 36-40, F

He probably didn't take out the loan when he was 18 and it has probably paid economic dividends for him and his dependents. That's the difference.

eli1601 · 70-79, M

@SunshineGirl Doesn't a student loan pay economic dividends? Otherwise, why bother going to college.

SunshineGirl · 36-40, F

@eli1601 When it does, the student pays back the debt. The idea of debt forgiveness is not to pursue those who don't obtain well paid jobs for repayment of the debt indefinitely.

FreeSpirit1 · F

@SunshineGirl True He wasn't 18 he was 27 and he has a company with employees.
There are medical doctors with student debt looking for their loans to be forgiven and I'm sure they earn more than he does.

SunshineGirl · 36-40, F

@FreeSpirit1 Yes, there's no justificaton for that. But I think it is reasonable to forgive debt after a certain period to former students who have not obtained well paid employment for whatever reason.

eli1601 · 70-79, M

@SunshineGirl So what is the minimum amount of salary you must have to pay back the loan. And what is the time limit. Maybe you don't make good money until you are 45. Should there be a moratorium rather than forgiveness.

FreeSpirit1 · F

@SunshineGirl if his business failed and he couldn't pay the debt back it's on him. They should just allow people to declare bankruptcy and the student debt will be forgiven. That's how it is supposed to work. If his boss couldn't pay the loan there is no government escape plan.

SunshineGirl · 36-40, F

@eli1601 In the UK you pay back the debt at the rate of 9% above an income threshold (which is roughly equivalent to the mean national wage). Any sum outstanding 25 years after graduation is cancelled.

SunshineGirl · 36-40, F

@FreeSpirit1 True, but I just think debt acquired by young people at the start of their adult lives for education is a bit different to debt taken on by entrepreneurs for economically rational reasons.

FreeSpirit1 · F

@SunshineGirl A loan you can't afford to payback for college or any other reason should not be taken out in the first place, being 18 is no excuse. Lots of young people run up credit card debt they can't afford to payback and the government doesn't step in to help.

GeniUs · 56-60, M

@SunshineGirl Oh you're British, that explains your high levels of common sense.

SunshineGirl · 36-40, F

@GeniUs Thanks, but I don't think the two naturally go hand in hand!

justanothername · 51-55, M

@eli1601 Correct.

beckyromero · 36-40, F

@FreeSpirit1

A loan you can't afford to payback for college or any other reason should not be taken out in the first place

You wouild kill the real estate market, because there's no guarantee that people who take out mortgages will be able to still afford the payments in 10, 20 or 25 years.

FreeSpirit1 · F

@beckyromero and if they can't they can sell the home to pay off what they owe,, and if they can't sell the government is not there to forgive the loan. The Federal Government should not be involved in college loans in the first place.

SunshineGirl · 36-40, F

@FreeSpirit1 That didn't go so well in 2007-8. Markets fail all the tine because corporations and investors are too short-sighted to look beyond the bottom line. Governments have a duty and role to intervene when social stability and individual welfare are threatened by the unrestricted pursuit of private profit.