RonJonGuaido [none/use name]

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Joined 2 years ago
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Cake day: January 25th, 2023

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  • you’ll never be trapped in a scenario when the debts inflate above your ability to pay

    i understand that IDR provided forgiveness before biden, but under these former plans, interest would still accrue on the govt loans, and so if the former student’s monthly payments were short the amount to service the interest, this difference would be tacked onto the principle. being short every month over the course of 20-25 years worth of payments could bury kids alive (even w/ “forgiveness”, the forgiven sum is constructively considered income for tax purposes, so 40pct of impossible to pay debt, is still crushing; and good fucking luck to those kids ever getting a mortgage w/ a forever inflating debt balloon on their credit sheet.)

    the biden plan eliminates this negative amortization. it literally prevents the worst case scenario gestured at above, and is, while less good than a blanket jubilee, really an unambiguously very good policy.