“the White House’s open hostility toward protecting the nation’s millions of student loan borrowers“

[fantome profane]

Nation’s Top Student Loan Official Resigns | HuffPost

And the full text of his resignation letter can be found here

Frotman Letter

Under this administration the Consumer Protection Bureau is no
longer in the business of protecting consumers, it is now the banker protection bureau.

 

[tytlyf]

I don't vote republican because I'm in the middle class. Zero benefit for me voting republican.

 

[metis]

Under this administration the Consumer Protection Bureau is no
longer in the business of protecting consumers, it is now the banker protection bureau.

No surprise as his millionaire/billionaire buddies are far more important.

When will the Trump supporters learn that the Donald is not for average Joe & Mary Schmoe? What's important to Trump is Trump.

 

[pearl]

Under this administration the Consumer Protection Bureau is no
longer in the business of protecting consumers, it is now the banker protection bureau.

The CPB was the brainchild of Senator Elizabeth Warren and signed into law by President Obama. Student loans were a big thing with Clinton and Sanders.

 

[fantome profane]

The CPB was the brainchild of Senator Elizabeth Warren and signed into law by President Obama. Student loans were a big thing with Clinton and Sanders.

You know who else cares about student loans? Students. And parents of students.

And it is not just student who are getting abused but loan institutions. There is also the payday loan-sharks who are alowed to charge obscene amounts of interest. What little regulations they had to follow under Obama have gone now.

 

[Twilight Hue]

Simple don't get loans. You won't have those problems.

 

[suncowiam]

Simple don't get loans. You won't have those problems.

I get loans and I don't have that problem.

 

[Twilight Hue]

I get loans and I don't have that problem.

Me either. Makes you wonder why other people do.

 

[Flame]

Me either. Makes you wonder why other people do.

Not being prepared or dropping out of college seems to be the issue of students I know of not being able to pay off loans.

 

[Nakosis]

This is pretty complicated stuff.

Trump Student Loan Forgiveness | Student Debt Relief

Here are the other stances the Trump administration has taken:
The government “shouldn’t be making money on student loans”—the logical/only fix to this would be to lower the interest rate for federal loans going forward
Eliminate the Public Service Loan Forgiveness program (in favor of putting all borrowers into a single IBR)
Push colleges to cut tuition by reducing large administrative costs
Reduce federal regulations on colleges to reduce their compliance costs so they can pass those savings along to students
Universities will be required to spend all of their endowment money going forward on their students (instead of “hedge fund managers”) to keep tuition low and cut student debt or risk losing their federal tax breaks
If he does change the IDR program as he has suggested, those interested in Income-Driven Repayment plans would have a higher monthly payment, BUT forgiveness would occur sooner.

Here are the big outstanding questions:

• No mention of tax implications on forgiven student loan amounts
• No mention of bankruptcy reforms

 

[Subduction Zone]

Nation’s Top Student Loan Official Resigns | HuffPost

And the full text of his resignation letter can be found here

Frotman Letter

Under this administration the Consumer Protection Bureau is no
longer in the business of protecting consumers, it is now the banker protection bureau.

They should have planned ahead and been born to a wealthy family.

Don't mind me, I am working on my resume for the Trump administration.

 

[Revoltingest]

This is pretty complicated stuff.

Trump Student Loan Forgiveness | Student Debt Relief

Here are the other stances the Trump administration has taken:
The government “shouldn’t be making money on student loans”—the logical/only fix to this would be to lower the interest rate for federal loans going forward
Eliminate the Public Service Loan Forgiveness program (in favor of putting all borrowers into a single IBR)
Push colleges to cut tuition by reducing large administrative costs
Reduce federal regulations on colleges to reduce their compliance costs so they can pass those savings along to students
Universities will be required to spend all of their endowment money going forward on their students (instead of “hedge fund managers”) to keep tuition low and cut student debt or risk losing their federal tax breaks
If he does change the IDR program as he has suggested, those interested in Income-Driven Repayment plans would have a higher monthly payment, BUT forgiveness would occur sooner.

Here are the big outstanding questions:

• No mention of tax implications on forgiven student loan amounts
• No mention of bankruptcy reforms

Forgiving loans is an interesting topic. Government doesn't forgive principal or interest on
home loans (Fannie Mae & Freddie Mac). This has always been so, even under more
compassionate presidents like Bush & Obama, who let troubled borrowers go into foreclosure
to lose their homes. How are students more deserving of forgiveness than other borrowers?

Also.....

Student Loan Discharges No Longer Taxable Income
Section 11031 of the Tax Cuts & Jobs Act modified student loan discharges through total & permanent disability(TPD) from being added to the borrowers gross income. Under the new law, discharge student loans are no longer seen as taxable income if applying for disability discharge. This is a hugely beneficial change for disabled borrowers who want to apply for discharge on their federal student loans. Previously many borrowers elected not to apply for discharge and remained in an income-driven repayment plan.

For all other borrowers, forgiven principal, & sometimes interest are taxable income.
Students are getting a pretty good deal, even under Trump.

Get some debt forgiven, & you'll receive IRS form 1099 from the creditor,
notifying you that they've notified the IRS of this taxable income.
I'd argue that Trump is pandering to the student vote with his generosity.

 

[Twilight Hue]

Forgiving loans is an interesting topic. Government doesn't forgive principal or interest on
home loans (Fannie Mae & Freddie Mac). This has always been so, even under more
compassionate presidents like Bush & Obama, who let troubled borrowers go into foreclosure
to lose their homes. How are students more deserving of forgiveness than other borrowers?

Also.....

For all other borrowers, forgiven principal, & sometimes interest are taxable income.
Students are getting a pretty good deal, even under Trump.

Again the lefties have memory loss.

 

[Revoltingest]

Again the lefties have memory loss.

Or never knew much about lending & borrowing.

 

[metis]

Simple don't get loans. You won't have those problems.

That's all fine & dandy-- unless one doesn't have the $.

 

[metis]

OK, so if a corporation or a business takes a loss they can deduct that, but if Junior takes a loss trying to pay for his education that's just tough?

 

[Debater Slayer]

The government should come down harder on student loans so that it can instead direct more money toward paying lowlifes and guns for hire in uniform to invade other countries under the banner of "defending rights and freedoms (TM)."

Duh.

 

[Revoltingest]

OK, so if a corporation or a business takes a loss they can deduct that, but if Junior takes a loss trying to pay for his education that's just tough?

Losses reduce income. This is true for not just corporations, but also sole proprietorships
& partnerships. However, there are complex limitations under the byzantine tax regulations.
Not all losses are deductable (been there & done that).
But forgiven principal (& sometimes interest) is income in the form of reduced liability.
So the IRS treats student loans more favorably than they do other borrowers.

If you stage a coup to make me dictator, I'd recognize educational expense related to work
as fully deductable. I'd also make waived principal be a reduction in basis, rather than income.

 

[Twilight Hue]

That's all fine & dandy-- unless one doesn't have the $.

That's what I don't get with the exception of the essentials.

Why in the world would a person who has no money would take out a loan. And why there are lenders who would loan it out to somebody with no money.

People ask for trouble and they get it too.

 

[Shadow Wolf]

Me either. Makes you wonder why other people do.

Maybe, perhaps, because my parents weren't wealthy enough to send me and affording just one class out of pocket per semester is rough when you're poor.

If you stage a coup to make me dictator,

Despite our differences over the economy, I'd help install you just because I'd able to do so much better off than what we currently have. Whatever the plan, I'd support the Revolting plan that would make it not so goddamned difficult to go from part-time minimum wage jobs to floating around the poverty line (I was just hit with a $300 medical bill yesterday to add to the mountain - to the point a small loan is becoming very tempting so I'm not sending it out in a million different places and have more in my pocket at the end of the month).