iarmit t1_isxsk3q wrote
Reply to comment by flightwatcher45 in LPT: If you're planning to apply for/accept Biden's Student Loan Forgiveness, be aware that some states may TAX it as income! by Anachronisticpoet
I've heard this a lot, but I don't understand how it's the case.
flightwatcher45 t1_isy2fcg wrote
I'm a tax payer. The loans just don't disappear.
iarmit t1_it4fpwi wrote
Discharging debt means the debt no longer exists, like, specifically. So I'm not understanding how you're paying a loan that no longer exists. And not a single person making the same claim as you has any explanation for the claim, I'm hoping you do
flightwatcher45 t1_it4h075 wrote
How about a bank loans you 100k of their money, therefor the money went from bank to your school. Govt now says your loan is discharged, meaning you don't have to pay it back. Now school has money, bank doesn't get repaid. Does that make sense?
iarmit t1_it4hqsf wrote
So the fact that people have already paid back (in some cases) 2 or 3 times the total value of the loan, and still owe means the bank didn't get their money back?
flightwatcher45 t1_it4j4b1 wrote
Well they didn't get it fully repaid. See banks/everyone wants to make money. If I loan you 100 bucks and we agree you'll pay me back 110 over 5 years but you stop after paying me 102 then I'm out 8 bucks. That is a cost to me and I've lost money because I could have loaned that money to someone else. I get loan rates may be high and unreasonable sometimes but I'm simply showing how a loan works. Now the banks aren't getting their money, like housing crash and lots of banks fail or govt prints money and pays them back, leading to inflation. School loan probably won't close any lenders but eventually that money comes out of somebody's pocket.
iarmit t1_it4k3e1 wrote
But it's not the bank, right? It's the government with tax money. That's why you're saying your paying off those loans. But if all that is being written off is the excess interest, as most folks have already paid back more than the value of the loan, there is nothing else the government would have that other people need to "pay back" in someone else's place.
flightwatcher45 t1_it4ozet wrote
Trust me, if a 10k or 20k value is being discharged that's not imaginary money, it was owed to someone. The loan repayment amount, even whats above whats being borrowed, was the agreed repayment. Let me show you, venmo me 100 bucks, I promise to pay you back 200 over the next 15yrs.
iarmit t1_it4x0pv wrote
Okay, so you don't have any reasoning to back up your "I'm paying off their loans" beyond talking points and "trust me". Thank you anyways, and no hate, I was just hoping someone could actually explain it. It's okay if they can't (as we very obviously disagree on the idea of lessening economic hardships when it comes to people and not corporations).
Sorry, I don't know how to mark this as "I'm not being sarcastic and I really do politely mean we'll just have to agree to disagree". I do thank you for your responses
flightwatcher45 t1_it4yc4h wrote
I hear you. We all pay man. A company didn't get paid, govt will reimburse and we all, most, pay taxes. Our national debt will go up.. Nothing is free in life lol. And lots of people make payments and doing fine that get the discharge. Google who pays for student loan forgiveness. I had almost 6 figures of student debt, got a good job, read the fine print and paid it off. Now govt is essentially handing out 10 20k.. I want my free money!
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