Student Loan Forgiveness Explained

[@grizwoldphantasia5005]

As some famous economist said, if you didn't have a student loan before, you've got one now!

[@kazi1]

lol

[@seniorbob2180]

You don't want Harvard to suffer, do you!? "At the heart of every great disaster, there is a Harvard man" - Dr. Thomas Sowell (Harvard graduate)

[@s0nnyburnett]

What about Black Mesa?

[@seniorbob2180]

@@s0nnyburnett Gordon has that covered.

[@timothyjacksondrake4454]

I don't want Harvard to suffer, I want all colleges to suffer. After dealing with the American college system for four years now I think the best option is burn it down and start from scratch.

[@fixedG]

When private lenders gave mortgages to people who couldn't afford them, they defaulted and it was a big problem. When government lenders gave student loans to people to pay for degrees with no earning potential, it's somehow less irresponsible and predatory.

[@dickfacepeterson]

Too bad the gov forced lenders to give sub prime loans. Doj literally sued banks for not giving out mortgages to low income recipients

[@hullbreach33]

In both cases the government was pushing lenders to make those loans.

[@trollof229antthevariable9]

Nobody cares. The burden for living is higher than ever with no real attempts to ease it on the lower class. The government is going to have to get involved or it just isn't going to be reasonable. Every single commodity has gone up exponentially but wages have not. People can't afford homes. College is more expensive than ever. Fuck these predatory loans that most of us signed up for at 17. Our entire culture pushes college or bust. Community College should be free since they essentially teach the same thing as high school AP courses.

[@hanamlchl]

@@trollof229antthevariable9 Newsflash: that's intentional. If the lower classes can't survive without the government? Then they vote for more government.

[@slimey93]

In both cases the tax payer is the one that has to pay... shits fucked

[@feroxludum]

Does anyone believe for a moment that universities could charge tens of thousands of dollars a semester in tuition if the market wasn't saturated with all that easy money from Uncle Sugar? They would have 75 students in attendance, or else they would have to lower their tuitions dramatically to attract reasonable numbers of students ... except that toxic subsidies have ruined that market and driven prices skyward. The Law of Unintended Consequences is still in effect, it seems.

[@brocklastname6682]

This guy gets it.

[@JakeSummers2424]

Ever since government got involved, their prices went way up and quality when to toilet.

[@955miro]

@@JakeSummers2424 government has this exact affect on everything they meddle in…

[@herpderp7114]

What makes you think the consequences are unintended? After all, the goal of the people in the government is to make money for those who get them there..

[@nonyadamnbusiness9887]

Who would have thought that increasing the number of degrees by an order of magnitude would decrease their value and who would have thought that having all the college graduates six figures in debt to the government would have ever been used for political leverage?

[@melonieashway4189]

Government doing what it does best, using money it doesn't have to buy votes

[@katieandkevinsears7724]

Don't they know all they have to do is get the dead to vote again? Just like 2020.

[@reharl4953]

It's shocking how much governmental effort is directed simply at their own self-perpetuation, rather than fulfilling the functions with which the electorate has entrusted them.

[@Notrocketscience101]

We have a Fiat currency which means the government simply prints more money, spends it and The resulting inflation simply dilute the value of anybody savings. The last hundred years they washed away 97% of a dollar purchasing power, in the next hundred years they’ll wash away 97% of that three remaining percent and so on and so on.

[@marcillioficino4663]

They just print it right out of thin air. It basically grows on trees.

[@SaixanMobile]

wrong

[@conureron3792]

You know, they nailed the contempt the reps have for the average Joe, calling us”idiot” since we questioned the merits…

[@brentruss2168]

Man, why can't I ever be in the voting demographic that gets "free" stuff in exchange for votes and campaign donations? Vermin Supreme was the closest I ever got. I still want that free pony, dammit. /s

[@theBear89451]

What is your generation size compared to others? Economist used to think that it was preferred to be part of a small generation, so there would be less competition at each career stage, but now we know bigger is better, so you can use voting block size to steal money from other generations.

[@zwerko]

I know of no person who qualified for these 'reliefs', whether intended for the 'working classes' or politicians' buddies from their golf club, that I'd ever like to trade places with.

[@brentruss2168]

@@theBear89451 Good point. My generation is much smaller than the generation who get "free" medical care for their votes, but bigger than the generation being offered "free" education for their votes. I'm in the last of Generation X, so free ponies and free zombie power is all I've been offered so far by any politician (satirical or not).

[@Xpistos510]

You're not a big enough contributor to super PACs. Become a billionaire and both parties will give you ALL the goodies you want.

[@katieandkevinsears7724]

I'm kind of glad Vermin didn't win. I don't want the responsibility of taking care of that free pony. But he's awesome otherwise.

[@staleydu1]

This action harms me as a taxpayer. As such, it gives me standing to sue the government and the person who signed this executive order and ask for a temporary restraining order to stop this action. We the people need fight back and sue on just that.

[@theroamingsavage8813]

Trust me, theres more mouth breathing parasites than there are hard workers in this country. We are outnumbered. And get ready, the way things are going, this will only get worse. I already have my sights on some properties across the ocean.

[@swesleyc7]

Some day we'll end up having to do more than just sue.

[@dogg-paws]

Initiate a peaceful protest. Get your voices heard.

[@IncrediPaulAZ]

This is taxation without representation, straight up

[@wagglebutt]

@@IncrediPaulAZ no it isn't. This power was delegated by congress to the department of education. Congress represents you.

[@reharl4953]

It's shocking how much governmental effort is directed simply at their own self-perpetuation, rather than fulfilling the functions with which the electorate has entrusted them.

[@jeffrobison6729]

“Everyone I know watches that show” Amazing line!

[@watchdealer11]

Taking from the poor to give to the rich

[@Bc232klm]

What rich family has student debt? Did you think about that one for more than a second?

[@watchdealer11]

@@Bc232klm your argument has already been debunked. They become rich after getting their degrees, such as accountants, doctors, lawyers, etc. According to numerous studies and CBO reports, the bulk of the benefit of student loan forgiveness will be going to the rich. Even strong left-leaning and even leftist publications like the Washington Post have gone against the debt cancellation because of how unfairly it burdens the poor at the benefit of the rich.

[@spraynpray]

@@Bc232klm Hey look everybody, this guy has never met a poor person and thinks people that went on a 4 year party bender at 18 are "poor".

[@swesleyc7]

​@@Bc232klm I think he's thinking of the $120k income qualifier. If the loan forgiveness program gave to those making, say $40k, it would be a different story. I think the real issue is a) Democrats trying to buy votes and b) wealth redistribution. What he should've said was "taking from the responsible and giving to the irresponsible" or "taking from those with and giving to those that want".

[@Vaelosh466]

Even if we decide to forgive student loans, that should come with the clear indicator that the current system isn't working so it needs to be changed. I suppose the obvious Libertarian option is that the government stops backing student loans, but at minimum the government needs the ability to negotiate tuition rates with colleges or limit the student loans to state schools only.

[@tanshihus1]

You do know that Congress already has the power to control the prices that companies can charge? The primary reason that they don't use it is... their campaign donors.

[@monad_tcp]

Why must the government forgive loans? Why not the universities? Why do they need so much money.

[@tanshihus1]

@@monad_tcp Why would they? Don't have the money to go to school? Then don't go. The universities have a product which they offered to students at a price. Unless there is something wrong with the education they delivered, they've held up their end of the contract. The complaint is between the students not being able to pay back their loans to the banks. Because it was a government backed loan, the students had to agree to some terms that you probably wouldn't have. They can't declare bankruptcy to eliminate the debt. Hence all of the moaning and whining about payments.

[@AT-il2ej]

@@monad_tcp the universities don't give out the loans so they have nothing to forgive? You literally have no idea how this works lol. Does the car dealership have to forgive your loan when you default? No. They already got paid for the car.

[@tanshihus1]

@@strangelyukrainian7314 yes. That is how business works, if you're making money then do more of the same. While your criticism is valid it has nothing to do with student loan debt. Those companies will either succeed or fail all on their own.

[@chrimony]

@2:03: Student debt in 2022 canceled by fiat because of 9/11 in 2001. Of course, makes perfect sense.

[@jefferydebbink282]

I went to college, didn’t take on any debt, and got my degree in accounting. I’ve held a steady paying job for a bank for over four years now. Will you refund my tuition dollars if you’re going to forgive rich peoples’ student loans?

[@Bc232klm]

Not all about you Jeffy

[@Fabric_Hater]

I didn't go to college at all yet I have to pay out of my pocket.

[@RoyArrowood]

@@Fabric_Hater Best option is that we all stop paying taxes. Start your own business and just never file again. The whole pile of crap will come tumbling down

[@brocklastname6682]

No, you were responsible and prudent. You get nothing.

[@Fabric_Hater]

@@RoyArrowood they just print money.

[@sajo1323]

Doesn't student loan forgiveness imply there's something really wrong with the education system

[@haraldvonhinten8921]

Yes. Having to go 5 or even 6 figures in debt to get a decent education is what's wrong.

[@beaudavis3808]

@@haraldvonhinten8921 We need to go back to the apprenticeship programs once again.

[@haraldvonhinten8921]

@@beaudavis3808 You need to ban private schools and universities and make education free of tuition.

[@reharl4953]

Yes. Endowments and government subsidies.

[@reharl4953]

@@haraldvonhinten8921 How are the teachers going to be paid? With tax subsidies? That's basically what's happening now (through a plenum), and it's not working. The public school system also follows this model (via a separate plenum), and it consistently and woefully underperforms. "Let's just make everything free" as an answer to any economic question is sophomoric and naive.

[@jordanthomas4379]

I love how in this video it is the person who didn’t even go to college are the most hated and ignored out of the three groups. Very accurate how the government sees us.

[@garereeve117]

I'd be willing to support full student loan forgiveness under two conditions: 1: We call it "investing in the future" and, accordingly, garnish 5% from all future earnings OF ANY TYPE from anybody who accepts the bailout, as a "dividend" on our "investment". Sure, we won't make our money back from most of the people with degrees that end in the word "Studies", but we might hit the jackpot with somebody who creates the next big social media empire. 2: All future student loans must be co-signed by the college receiving the tuition money. If their degrees are a guarantee of good wages after graduation, then they'll have no reason to object, right...?

[@josephfox9221]

im getting my student loans forgiven, and thats wrong. I made a choice, I have the means to pay it off and its my responsibility. instead of pumping money into the system that has already proven to be a failure, they need to figure out how to make college affordable, or find real alternatives to a college degree. or get out of the way.

[@smokedbrisket3033]

the way to make college affordable is to stop subsidizing it. college tuition is up something like 1000% since the 1970s. Schools charge more, and get more, because of the amount of money the federal government is pouring into it. If there's more money chasing the same amount of goods and services, the price of those goods and services will go up.

[@josephfox9221]

@@smokedbrisket3033 I recall in my political science class we literally went over how much college tuition skyrocketed after the federal government started subsidizing it, and the general opinion in the class was "well its no big deal because they get pale grant that pays for it. people really cant see that they are going to be on the hook after they graduate and start paying taxes. meanwhile my School spent 1.8 mil for a new sign.

[@smokedbrisket3033]

@@josephfox9221 the best lesson in economics people need to learn: TANSTAAFL. If people would learn that, then the demagoguery would end. But there's nothing new under the Sun, and people have been falling for it since at least the days of the Athenian republic. And probably long before then.

[@swesleyc7]

@@josephfox9221 The govt. subsidized it so it can have more control over academia. More control over academia means more control over the youth. That's why we have such insane ideologies infecting the minds of college students. It's "elite" in power and "intellectuals" in govt. administration that are pushing govt. control.

[@feroxludum]

@@smokedbrisket3033 TANSTAAFL should be printed on our money - or better yet, stamped on our (gold) coins.

[@AmericanAntiCorruptionAct]

Student debt isn't about irresponsible young people taking out more loans than they'll be able to pay back. It's about a corruption cycle between loan companies, lobbyists, and our lawmakers, designed to make them rich and powerful - AT YOUR EXPENSE.

[@loszhor]

Just let them be able to take student loan debt to bankruptcy court if they truly can't pay it back.

[@FEV369]

Aww man, I thought at the very end when you kneeled down and were talking to the kids that you were going to point out how they will be paying on the interest of the student debt for the rest of their lives. Because we never actually pay down the Federal debt.

[@seanposkea]

So you'll be calling your senator and congressmen tomorrow urging them to raise taxes on billionaires and corporations? You're ok that TWO men in this country are so frickin rich they can have their own private space agencies but some kid working two jobs to put himself through school is just a taker.

[@flyingdaytrader]

@@seanposkea I guess the entire concept of this video and libertarian values just went in one ear and out the other.

[@seanposkea]

@@flyingdaytrader No, it went in one ear and was heard as the liberation BS that it is. We spend billions subsidizing petrochemicals, supporting corrupts governments, bailing out mega-corporations, Over $800 Billion on the Pentagon EVERY year. Many of the GOP pretend-politicians complaining about student loan debt relief PERSONALY received hundreds of thousands, in some cases, over a million in PPP loan forgiveness. Where is your outrage at all of that? But try to help out the next generation of nurses, teachers, EMS, public service workers, etc who are barely scraping by with maybe as much as $20k! OMG! "Pass me the smelling salts as I clutch my pearls!"

[@jamesfitzgerald1684]

@@seanposkea Those two men owning space agencies, which is a good thing btw, have nothing to do with some kid having two jobs. And BTW Elon Musk pays a high percentage in taxes than you do. The top 10% of earners pay most of the taxes in the country. Any raise on taxes just ends up getting put on the middle class or impedes progress one way or another.

[@seanposkea]

@@jamesfitzgerald1684 "He pays a higher tax rate than you do" Um yeah... You say that like you're making a point. The guy is worth $255 billion that’s Two hundred and fifty-five THOUSAND-MILLION. F-yeah he should pay a higher rate than me. The US has reached a level of wealth inequality only seen in 3rd world countries. The average US income is $31k. And Musk and Bezos are just two names people know. There are hundreds of US billionaires who pay little or no taxes. 55 major US corps paid $0 in fed tax last year taking advantage of PPP designed to keep the corner store open through the pandemic. Amazon is crushing worker’s efforts to get bathroom breaks and sick leave while Rocket Boy makes 58X his average worker (not lowest, Average). When the kid of an Amazon worker making $30 a year goes to college then yeah, he’s goanna be working two jobs. Maybe he wants to go into nursing, teaching, or be an EMT. We’ll he’s stupid because those jobs earn on average about the same as his dad is making at Amazon. Silly kid, he should have done something useful like hedge-fund management or marketing. I’m a 50 yr old college professor (still paying off my loans and I worked all through college and even had a 1-year full ride scholarship) and almost all of my students are working at least one job. They are leaving my class to go stock shelves or clean hotel rooms till 2 in the morning. $10k will make a HUGE difference in their lives, give them room to start that business, move out of mom’s house, take that career-launching but UNPAIND internship. 10k to Musk is like losing a nickel in the sofa. But Right wingers and Libertarians would rather have them trapped, forced to work low-pay, low-status, dead-end jobs because that’s what make the rich more money.

[@AlohaBlockchain]

Let's be real. The only people who will notice any relief are liberal arts majors, degrees that do little for society. Those who studied the hard sciences can easily pay off their loans.

[@williamryder5021]

That is not fully true

[@reharl4953]

This is partially true. It's mainly a way for the bloated federal government to convince people with zero grasp of basic economics of its validity.

[@AlohaBlockchain]

@@artandarchitecture6399 They will take the free money, and I don’t mind so much.. It is the people who study subjects that have no real world use I don’t want getting their loans forgiven.

[@TumultuousTitan]

The Loan forgiveness isn't for the person who took out the loan. The money goes to the lenders who bought it from the bank that issued it. Rather than being a bad investment, it's a new bailout.

[@wherethetatosat]

"Do you really want Harvard to suffer?" Yes. Yes I do want them to suffer.

[@reharl4953]

And they should. Wouldn't want them to dip into that $50+bn endowment or anything.

[@TrudleR]

Such an important video in stupid times like these.

[@Bc232klm]

Forgiving student debt completely is important in times like these.

[@TrudleR]

@@Bc232klm are you a student?

[@markm0000]

@@TrudleR That's a rhetorical question.

[@Decimalten]

Wish people like this had the same energy about where our tax dollars go otherwise.

[@DanJohnsonAffordableAviation]

EXCELLENT! One of your best. I like the three-audience approach.

[@sarahg2653]

Good work, Reason!

[@tatebrown5733]

I REALLY wish that folks making ABOVE 240k were the only ones getting relief and ONLY us making less than that (less than 100k ideally) would be the group to pay for it! Now THAT would be a movement I could get behind.

[@hereticsaint100]

Even if you never went, your taxes still go for it.

[@Art1_Sec8]

never went to college, but before I realized I wasn't college material, I wanted to major in Theology. thankfully, my dad said, "love that you're that interested in it, but are you sure that's what you want to do? go for something that'll pay well, not just something you enjoy" evidently, my peers never had that conversation

[@TheThanatos34]

Sure but these are all 17-18 year old kids that should not be coerced into signing these huge loans in the first place.

[@mthees08]

The government has no business being in the loan business.

[@brackcarmony6385]

The government has no business being

[@deecee784]

This Student Loan Debt forgiveness plan is the greatest thing that has ever happened to the Republican Party. Anyone who has ever paid their own way is pissed off because of it My wife votes Democrat --- but is now going to vote for anybody else, or just not vote next time, she's that mad.

[@johncrocker4209]

The funny part to me. If there is one. Is that the majority of people who will benefit from this is the Banks. Unless it actually completely pays your loan off. You'll still have debt & a bill to pay. Plus increased taxes & inflation.

[@Zt3v3]

Student loan forgiveness is ridiculous and pisses me off. That said, there is a change that would be reasonable on this topic. Student loans should be dischargeable in bankruptcy. Our bankruptcy system is an excellent last resort with a heavy price to pay but a way out for those that find themselves out of options.

[@pivot197]

Who pays for it then? They took tax payer money to pay tuition and housing. If they go bankrupt it is the same as student loan forgiveness.

[@PNWGoodTimes]

Yep, paid my loans off by actually working to earn money! What a concept!!!

[@hanamlchl]

They already covered that! "You did it once, you can do it again! For them!"

[@hidesbehindpseudonym1920]

Good for you, it means you made enough to pay them. There are tons of people who work and still don't make enough to pay their loans college is a risk and it's been too risky.

[@Liberty4Ever]

Sucker! I'm going back to school even though I got my degree 34 years ago after working ten years to put myself through college, back before government financial aid made college so expensive that there is no way to work your way through college. I'm going to take out student loans, not go to class, invest the money, then have my student loans forgiven. What moral hazard?

[@PNWGoodTimes]

@@hidesbehindpseudonym1920 a risk? Sure. Thats the choice an individual has to make. But should that risk get shared with the rest of society? I say no.

[@brocklastname6682]

If you spend tens of thousands of $$ for a degree and then can't get a job with any ROI, then the university scammed you.

[@RealMTBAddict]

I became a concrete finisher Journeyman in 3 years for $300. I make around $1k a week. Not college wages sure, but no debt either.

[@notme6331]

Austin Bragg is one of the most consistently funny people even when he's making fun of me

[@FifthConcerto]

I liked all of this video. The surprise ending was the best. Can "out of office" be a write in? Can we have that mean, "No, just go away, with no replacement! Ever!"

[@AT-il2ej]

Libertarians want to disband the country? Seems like a great idea. Which country do you want to be a part of when they come over and immediately take over your shit. I'm partial to Spain but their military isn't strong enough to hold anything. Probably China wins.

[@jimdez11]

Awesome as always Austin.

[@RealMrYouTube]

Arguments on both side would be moot if student loan borrows could get bankruptcy protection.

[@je3801]

Love this format for a video

[@Rajaat99]

This video us why I watch Reason.

[@jamesfitzgerald1684]

These loans are so bad nobody can ever pay back these loans... let's keep giving them out.

[@RankinAuctions]

I need more ReasonTV in my life.

[@akaMyThought]

So they are giving 10k to 20k to people who signed a binding contract knowing they were taking money and had to pay it back and did not. They should be giving that money to the people who had to figure out how to pay there loans back and did. I spent 7 years paying back my loan and did it. I did not cosign with these people. That is there individual debt that they brought on themselves and signed there names to. This makes as much sense as telling me that everyone at work took a month off than showed up and the boss comes to me and says i know you have been here working 10 hours every day but uh well the other employees couldn't meet there obligations so we are going to take money out of your pay to pay them for what they couldnt achieve. That's fair they say.. how about we have the government take money out of yor paycheck and everyone to pay for my car loan? Maybe they dont, because you dont have anything to do with my car choice or my loan that I signed. It's not your obligation to pay for my car loan. Same as it is not my obligation to pay for your loan you signed your name to. Did I cosign your loan.. no. Did you cosign on my car loan No. so why do i have to pay into you legal binding loan contract you signed. Has nothing to do with me. Same as my car loan has nothing to do with you. wow screw this administration and Joe Biden..

[@WowRixter]

Best explanation yet!

[@alexmaccity]

thats why I'm not rich. I dont wanna pay taxes

[@x-31mej0r-5]

Does that loan debt forgiveness apply to acquiring new school debt?

[@reharl4953]

Glad I did eight combat deployments and lost my right eardrum to an IED so I could get this GI Bill, and have some rotund LA major get their loans forgiven off the back of my tax dollars while hating me for it.

[@Peglegkickboxer]

Welcome to the real world. Never trust government, this why the founding fathers made the declaration of independence and constitution as it is today. The government is too big and powerful.

[@i.Gnarly]

Glad my country goes to wars that I don’t support and spends a quarter of our yearly tax revenue on the military. Thanks for your service, but you were free to choose to not fight rich peoples’ wars.

[@SimonASNG]

Proposal... Universities must guarantee the value of their credentials. They have endowments and could fund the loans themselves. If a student can't find a job related to the degree they got, they don't have to make payments. After some period of time (~15 years), the remainder of the loan must be forgiven by the school its self. Over night, schools would tighten their own belts, drop useless degrees and affirmative action programs. Costs would fall and quality would increase. All without tax payer expense.

[@JonMaxwell]

So I'll expect a degree with my new involuntary college loan payment then right?

[@SummumBonum.]

Do one on PPP forgiveness too please.

[@mghegotagun]

You mean the loans the government gave to people, and was used to keep workers paid because the government shut down businesses during covid? You mean those loans that business owners literally had no choice but to take or else they would have to lay off their entire staff/close their businesses because of local government response to covid mandating near-shutdowns against the will of business owners?

[@SummumBonum.]

@@mghegotagun yeah, the ones that were forgiven.

[@mghegotagun]

@@SummumBonum. Okay. Just so you know there's a difference between choosing to go into debt attending college, and government making you go into debt by shutting down your business.

[@SummumBonum.]

@@mghegotagun you sound like you know a lot.

[@SummumBonum.]

@@mghegotagun I was just thinking about the collosal amount of tax breaks given to every kind of company who can lobby successfully with politicians who almost certainly get huge kick backs when they can pull strings. How do you think those numbers compare? Who does more for this country? The ones who keep shit running on the ground or those who capitalize on monopolies and legacies through favor with politicians? Because that is who you are standing up for by opposing this act. You are against the person at the bottom who just wants to move up and make a decent living.

[@fragout9575]

Debating this is the equivalent of walking a tight rope made of surgical steel razor blades... Bottom line; for decades we the tax payers have been bailing out people, corporations and foreign nations and funding "non war" wars... And we squabble about it endlessly. Not much we can do about it except vote and pay our taxes like good citizens. Carry On!!

[@geohawk6337]

Quick question: should I relinquish my children's NEST savings to those affected by the crisis now or wait until they mature?

[@michaelmurphy2112]

My sleepy self needs a subtitle to let me know who's being spoken to with each background. I think I got it straight by the end though.

[@FatherAndTeacherTV]

This is funny. I like ReasonTV's brand of humor.

[@sdyoungii]

Searched back though the videos to find the one Reason did on PPP loans when those came out and couldn't find it. Can anyone help me out with a link?

[@EmptySpa_e]

In the military we had a phrase for this: "hook ups for f*** ups"

[@robinc.6791]

Higher level education shouldn’t have cost this much to begin with

[@hallcrash]

This whole situation is such a distraction. This is just basically cutting the intrest rate. The average school loan is $40,000. The average intrest rate is 5% which equates to $2000 a year simple interest. On average, school loans are paid back in 10 years, in effect, that's cutting the interest rate in half from 5% to 2.5%. That's excluding compound interest loans and forbearance. People who make more than $150,000 NET income don't qualify, and those people often paid their loans early or refinanced them at a very low interest rate, or often they rolled those loans into a mortgage if the rates were low enough.

[@tonycatman]

Sorry, but giving it a different name does not make it a different thing. It isn't 'basically cutting the interest rate" at all. The fact that, numerically, the $ value is equal to the average loan size at 5% is irrelevant. The simplest, and best analogy is that people with loans were given $10k. Money is, as you have identified, fungible, so some percentage of those people who have had their loan reduced have now been given additional leverage, and they have used that leverage to purchase a car. So you may as well say "This is basically giving them a car"

[@hallcrash]

These loans should have no interest at all. They can not be disposed of like a mortgage or a car loan. It's taxpayer money funding these peoples education, there is no need for any government agency or loan server to profit in the billions of dollars over these loans.

[@tonycatman]

​@@hallcrash Governments issue bonds, on which they pay interest. There is also a level of default and collection cost. If you assert that there is some profit to be had from the interest, then you should be prepared to provide some evidence of that assertion. $10k today is worth more than $10k in 10 years time. Even to a government.

[@hallcrash]

Student loan securities are called SLAB's, it's kind of like bonds.. so, yeah we can use that analogy. The difference is the government can pay back the SLAB in full at anytime. So if the SLAB would pay put a certain amount over 10 years, they the government pays back the SLAB in one year, they interest payed on the investment is much much less. Its still government (or taxpayer money), regardless if a private citizen invests in a SLAB or not.

[@damongnojek3912]

This cost about as much as the Inflation Reduction Act was supposed to generate, right? Pure inflationary move.

[@mattcosgrove8254]

Lol Austin keeps hitting home runs! Well done!

[@morganoox3838]

Us lowly peasants will have to pay for this, and within a year the universities will put their prices up the same amount. Just like his subsidies for electric cars, then the price of electric cars went up by exactly the same amount.

[@egrono1]

In most cases, including mine, student debt in previous years was not nearly as astronomical as it is today. I spent years paying mine off, but I'm not spiteful enough to believe that just because I achieved this, others shouldn't be relieved of their incredibly high student debt burdens. The reason that you can't file bankruptcy on these loans is becoming clearer everyday. Our oligarch class doesn't want college graduates to be able to afford to buy housing because these speculators want to buy it up for pennies on the dollar and become the new mega absentee landlord class, ushering in neo-feudalism in this country.

[@SuperReview]

Can't tell if parody. Keep people poor > They can't buy houses > Oligarchs buy houses > Prices go up beyond what anyone can buy??? > Oligarchs profit when no one buys them because they couldn't afford them before the prices went up???

[@katiek.8808]

Ironically this continues to perpetuate the problem you are clearly aware of. This money goes to the oligarchs. This is the reality of socialism. Wealth redistribution from the poor up to the rich. Six figure salary earners are having debt paid for by five figure earners. This is not ok. We have an upper class that lives on debt and prepares and saves for nothing. It’s unbelievable to think the rest of us should bail them out.

[@passionatetechnology8306]

I think you are on to something Matt.

[@brennen7819]

Best point is that this really doesn't fix the root problem that college is charging these exorbitant prices. Being a whiny goofball that wants to yank the ladder up after you've climbed it says a lot. I didn't/haven't applied to college and I'm happy for the people who can alleviate some of that stress they got into when they were 17 years old.

[@dogg-paws]

That _isn't_ the root of the problem, but rather a symptom, that's the thing. Colleges charge money to support themselves and continue running, the facilities, employees, scholarships and other expenses don't solve themselves. If they don't, that spells trouble for their future. If you disagree, then pay me up, right now. Get at it, Brennen!

[@jeremyhansen9197]

Unrelated to anything, but if you're going to go crabbing it's best to keep the crabs together. That way if one tries to climb out the others will pull it back in.

[@jumpanama]

My wife and I are exactly why it's a terrible idea. We make 220k but have loans so this "forgiveness " was really just a bribe for the upper middle class like us. But don't worry. We'll be voting libertarian in November. And we suddenly have $20k extra to donate to libertarian candidates/PACs.

[@gerardomontesm]

I have never gotten a loan and don’t have one currently either. Could I apply for a loan today and this benefit me? Is there a date threshold for loan applicants that has to be met?

[@samuelbeatsminecraft2049]

That's what I WANT TO KNOW. That's the most important information yet yet no one's talking about it. Are you saying I can just get a loan that I WONT PAY BACK NO STRINGS ATTACHED AND JUST GO TO COLLEGE THAT EASY? I need someone to explain it plainly to me

[@PopeInnocentXIV]

What's the title of the background piece is playing between 0:20 and 0:40? Sounds kind of Chopin-ish.

[@thomasjefferson5076]

Amazing content

[@THNKKY]

I’d argue that by devaluing the currency they are lowering the value of the loans effectively doing debt forgiveness. Assuming the college debtors get raises to compensate for the inflation.

[@Notrocketscience101]

I knew we weren’t free when they forced me to stand up in school, assume a pose they thought appropriate and reset somebody else’s words about how free I was.

[@EliSkylander]

I wonder at what point we will be allowed to object, since we can't object for financial, fiscal, governmental, moral, economical, religious... reasons. Everywhere we turn, we're called miserly misanthropes who want (you said it) people to suffer. As though that's our only reason for objecting.

[@monarchnoo8561]

This is peanuts compared to what the corporations are getting

[@joek6791]

The US has a massive spending problem, this is not limited to either party, both are spending like drunken sailors. The US debt is over 31 trillion dollars, that $88,000 for every person in the US. Social Security and Medicare have unfunded deficits of over 96 trillion dollars over the next 75 years and this rises when fed and military retirements are taken into account to 129 trillion dollars. Last year to service this debt even with low interest rates it cost 562 billion dollars. The concept of forgiving student loan debt will just make this problem worse. It is also not fair to those of us that have paid off our loans or paid for our degrees. I worked a full and two part time jobs while earning my degrees. Are you going to reimburse me for my college expenses? What about those who go into the trades and do not go to college, are they going to pay for the degrees of those that do? Forgive the loans and the political fallout will be significant since this will strike many voters as an unfair and irresponsible.

[@notloki3377]

reminds me of that age old saying, taxation without representation makes you a racist if you complain about it.

[@jamessmith785]

§597. Expenditures to influence voting Whoever makes or offers to make an expenditure to any person, either to vote or withhold his vote, or to vote for or against any candidate; and Whoever solicits, accepts, or receives any such expenditure in consideration of his vote or the withholding of his vote- Shall be fined under this title or imprisoned not more than one year, or both; and if the violation was willful, shall be fined under this title or imprisoned not more than two years, or both.

[@jamessmith785]

Anyone who campaigned on forgiving debts of any kind in order to get people to vote for them broke this law and no one is talking about this.

[@jonathangatto]

0:32 This loan was a scam to begin with. Yall never complained about PPP loans being forgiven. Look i know people who have paid back 2 times what the owe and still owe 50 percent of the loan. This will help those folks as well!

[@tzaphkielconficturus7136]

If they wanted to actually help those people, they would allow the standard bankruptcy rules to apply to student debt, but then they would be making less money.

[@jonathangatto]

@@artandarchitecture6399 He has the right to do this under the HEROS act!

[@stuartyoung2383]

Would it not be far simpler to forgive all debt, including, but not limited to, student debt? After all, those numbers are arbitrary and capricious so they cannot be righteous, just or fair. Does that not make sense? I believe it does.

[@spraynpray]

Yes. Everything should be free. Anything you want. I want everything you own. It's righteous and just that I get it all.

[@stuartyoung2383]

Yeah, cars too.

[@mikesimonson7860]

It might be unconstitutional but at least it’s inflationary

[@captainkurrack3864]

Nicely done 👏 👏 👍

[@CarrotCakeMake]

If you give up 1% of the income, you give up 100% of the principle. Anyone who supports taxation has no right to complain.

[@benjaminlibertarianscorpio]

I didn’t take out any student loan in university

[@bridgiemon]

Now do PPP loans

[@swesleyc7]

Yup. The govt. is a scam artist, led by social activist zealots.

[@GraphicJ]

Fyi: commercial student loans prior 2010 are not applicable.

[@grahamsmith5396]

Forgive all student loans, child support, alimony, parking tickets.

[@davidelzinga9757]

This hurt more than it should have

[@cahivx]

Haha awesome. I just learned that Samantha Bee was canceled. Keep up the great work Reason!!!

[@narceron360]

I'm ok with forgiving them...if we stop making new ones. If they suck...stop. If they are harmful, predatory, whatever...stop making new ones.

[@darksoul479]

All the other first world countries don't seem to have a problem with this, why is that? It benefits Society to have as many educated people as possible, why does America make this so difficult?

[@dogg-paws]

They actually do have problems--weaker education overall and far more costly with the taxes.

[@MF-zj3zl]

Government message to: Students receiving forgiveness: Vote for us. Students who paid off debt: I feel your pain. Students who never took debt: Too f@cking bad. Sucker!

[@haraldvonhinten8921]

Ban private schools and universities. Make all schools and universities tuition free.

[@copernicus6420]

This is so accurate.

[@jordanthomas4379]

Perfect video

[@sgassocsg]

Not forgiveness. Student loan transfer. Transfer to you.

[@DefinitelyNotAMachineCultist]

Calling it forgiveness is Orwellian.

[@therealthreadkilla]

Somebody needs this explained? Exemplifies the reason why the debt exists in the first place.

[@winky32174]

This is the thickest mess I can think of. I had to pay off my loans, so why can't everyone else? It seems to be a push for the entitled youth!!

[@b_tang]

Bravo 👏

[@andersonlim1546]

Wow! No way! I should've taken out a loan to fit in with all those cool students with debt! What a missed opportunity!