EPTUS Politics Mega-thread - Page 3765
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Now that we have a new thread, in order to ensure that this thread continues to meet TL standards and follows the proper guidelines, we will be enforcing the rules in the OP more strictly. Be sure to give them a complete and thorough read before posting! NOTE: When providing a source, please provide a very brief summary on what it's about and what purpose it adds to the discussion. The supporting statement should clearly explain why the subject is relevant and needs to be discussed. Please follow this rule especially for tweets. Your supporting statement should always come BEFORE you provide the source. If you have any questions, comments, concern, or feedback regarding the USPMT, then please use this thread: http://www.teamliquid.net/forum/website-feedback/510156-us-politics-thread | ||
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NewSunshine
United States5938 Posts
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StasisField
United States1086 Posts
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JimmiC
Canada22817 Posts
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StasisField
United States1086 Posts
On August 25 2022 05:20 JimmiC wrote: This seems like a great plan, hopefully the next step is to put some controls on what universities are charging for education. I agree it looks like a great plan and controls on university tuition prices should be the next step. | ||
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Chewbacca.
United States3634 Posts
Is it just based on 2021 tax returns and is it gross income or AGI/MAGI? | ||
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Mohdoo
United States15743 Posts
On August 25 2022 05:28 Chewbacca. wrote: Anyone have any information on the $125,000 cutoff? Is it just based on 2021 tax returns and is it gross income or AGI/MAGI? I don't know for sure, but i imagine if they have your 2021 tax info, they will use that. and probably just agi since i think that's what they use for income driven repayment? | ||
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Mohdoo
United States15743 Posts
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BlueBird.
United States3890 Posts
On August 25 2022 07:05 Mohdoo wrote: One thing I missed was that so long as you are doing income driven repayment, they subsidize all interest gain. This is amazing. I'm over the moon. I wasn't sure if this was only if your minimum payment did not cover the interest, you would still pay towards interest before principal and just be treading water there I think? That is still way better than the current system where you make minimum payments and your amount owed grows. Although you would be legible for forgiveness after x years in new system I think. I could be wrong on this as I am not 100% sure but this is a very nice feature from the new exec order. | ||
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Mohdoo
United States15743 Posts
On August 25 2022 08:10 BlueBird. wrote: I wasn't sure if this was only if your minimum payment did not cover the interest, you would still pay towards interest before principal and just be treading water there I think? That is still way better than the current system where you make minimum payments and your amount owed grows. Although you would be legible for forgiveness after x years in new system I think. I could be wrong on this as I am not 100% sure but this is a very nice feature from the new exec order. I think the idea is that making the income based payment may still mean your balance grows each month. If 5% of discretionary income is less than the amount of interest per month, you aren't making progress by making payments. So they are saying your balance will stay right where it is so long as you keep making payments. After 240 payments, the balance goes away regardless. In essence, this is a good way to do what I have advocated for: make student loans not really a thing. Rather, if the government pays your tuition, 5% of your income goes to the government for the first 10 years. They are making it 20, but whatever. | ||
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Lmui
Canada6223 Posts
Limiting costs and interest rates is the next step here, but one step at a time. | ||
KwarK
United States43984 Posts
On August 25 2022 04:09 Fleetfeet wrote: I'd tend to trust Kwark on this one, but I'm interested to see the fine print. Probably wise. As a rule debt forgiveness is income but this is highly political and it would be politically unpalatable to gift people a one time high tax bill. Sounds like they wrote an exception. | ||
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Mohdoo
United States15743 Posts
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farvacola
United States18857 Posts
+ Show Spoiler + SEC. 9675. MODIFICATION OF TREATMENT OF STUDENT LOAN FORGIVENESS. (a) In General.--Section 108(f) of the Internal Revenue Code of 1986 is amended by striking paragraph (5) and inserting the following: ``(5) Special rule for discharges in 2021 through 2025.-- Gross income does not include any amount which (but for this subsection) would be includible in gross income by reason of the discharge (in whole or in part) after December 31, 2020, and before January 1, 2026, of-- ``(A) any loan provided expressly for postsecondary educational expenses, regardless of whether provided through the educational institution or directly to the borrower, if such loan was made, insured, or guaranteed by-- [[Page 135 STAT. 186]] ``(i) the United States, or an instrumentality or agency thereof, ``(ii) a State, territory, or possession of the United States, or the District of Columbia, or any political subdivision thereof, or ``(iii) an eligible educational institution (as defined in section 25A), ``(B) any private education loan (as defined in section 140(a)(7) of the Truth in Lending Act), ``(C) any loan made by any educational organization described in section 170(b)(1)(A)(ii) if such loan is made-- ``(i) pursuant to an agreement with any entity described in subparagraph (A) or any private education lender (as defined in section 140(a) of the Truth in Lending Act) under which the funds from which the loan was made were provided to such educational organization, or ``(ii) pursuant to a program of such educational organization which is designed to encourage its students to serve in occupations with unmet needs or in areas with unmet needs and under which the services provided by the students (or former students) are for or under the direction of a governmental unit or an organization described in section 501(c)(3) and exempt from tax under section 501(a), or ``(D) any loan made by an educational organization described in section 170(b)(1)(A)(ii) or by an organization exempt from tax under section 501(a) to refinance a loan to an individual to assist the individual in attending any such educational organization but only if the refinancing loan is pursuant to a program of the refinancing organization which is designed as described in subparagraph (C)(ii). The preceding sentence shall not apply to the discharge of a loan made by an organization described in subparagraph (C) or made by a private education lender (as defined in section 140(a)(7) of the Truth in Lending Act) if the discharge is on account of services performed for either such organization or for such private education lender.''. (b) <> Effective Date.--The amendment made by this section shall apply to discharges of loans after December 31, 2020. Link | ||
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NewSunshine
United States5938 Posts
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Acrofales
Spain18290 Posts
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farvacola
United States18857 Posts
On August 25 2022 22:56 Acrofales wrote: What's to stop the University of Hickville from doubling their tuition tomorrow? The fact sheet linked on the prior page provides the following, which appears to up the enforcement ante and signal the promulgation of new rules regarding what school recipients of federal funds can charge: While providing this relief to low- and middle-income borrowers, the President is focused on keeping college costs under control. Under this Administration, students have had more money in their pockets to pay for college. The President signed the largest increase to the maximum Pell Grant in over a decade and provided nearly $40 billion to colleges and universities through the American Rescue Plan, much of which was used for emergency student financial aid, allowing students to breathe a little easier. Additionally, the Department of Education has already taken significant steps to strengthen accountability, so that students are not left with mountains of debt with little payoff. The agency has re-established the enforcement unit in the Office of Federal Student Aid and it is holding accreditors’ feet to the fire. In fact, the Department just withdrew authorization for the accreditor that oversaw schools responsible for some of the worst for-profit scandals. The agency will also propose a rule to hold career programs accountable for leaving their graduates with mountains of debt they cannot repay, a rule the previous Administration repealed. Building off of these efforts, the Department of Education is announcing new actions to hold accountable colleges that have contributed to the student debt crisis. These include publishing an annual watch list of the programs with the worst debt levels in the country, so that students registering for the next academic year can steer clear of programs with poor outcomes. They also include requesting institutional improvement plans from the worst actors that outline how the colleges with the most concerning debt outcomes intend to bring down debt levels. Link | ||
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JimmiC
Canada22817 Posts
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farvacola
United States18857 Posts
On August 25 2022 23:23 JimmiC wrote: I am mistaken or is this a HUGE win for Biden and good policy? And after a pretty good win not to long ago. Things getting done, albeit slow but that seems to a be feature of politics, way less Drama. He is delivering. I mean there is still drama but that is all the last guy. We'll know the answer to the former in November. As for the latter, I think it's good policy so long as it signals the start of more reform. If this is all that will be done, not so much. | ||
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Mohdoo
United States15743 Posts
On August 25 2022 22:31 NewSunshine wrote: The White House announcement you linked on the last page also makes that clear. It was definitely worth the read to understand everything they're doing, which goes beyond the basic 10K we were expecting. The new discretionary income calculation in addition to 5% rather than 10%, and no interest accrual as long as you make payments, is gigantic and way bigger than the forgiveness lol | ||
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JimmiC
Canada22817 Posts
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