Thursday, August 31, 2023

Personal reflections on the student loan forgiveness policy

I got some very good news last week. An email was tagged: “Your student loans have been forgiven.” First I thought it was fake and then I checked it out and yessiree, no more student loan payments. I have been paying off $20,000 in grad school loans since 1993. Successfully, at first, and then as our financial situation experienced some serious ups and downs, I worked with my student loan provider, one of the businesses that the government contracts to provide this service. I would get them down to a payment I could afford and then they would suddenly, as if some invisible switch was pulled, jack it up to a higher level I couldn’t pay. I then would request a forbearance for six months or a year and that would expire, the company added in all of the unpaid interest, and my payments would be higher than ever. Or I would sign on to a payment plan and suddenly my company shuffled me over to another and I had to start all over again. When my wife's coffee shop/art gallery business failed (she was ahead of her time) 20 years ago, we declared bankruptcy which I thought would include my student loans. I neglected to read the fine print.

I consolidated my loans in 2012 when they reached the $102,000 mark and worked out payments with Nelnet and the amount with accrued interest and fees reached $165,000. Interesting to note that the federal government paid off the student loan servicer and it, conceivably, was very happy to have the money and scratch me off their to-do list. Not such a great deal for the feds and my fellow taxpayers. But, as a taxpayer, I was also supporting the government to contract with this servicer which didn’t seem to give a damn about me and millions of others in debt for attending college. One of the worst servicers is FedLoan Servicing, an arm of the Pennsylvania Higher Education Assistance Agency, a company co-owned by Betsy DeVos, Trump’s “secretary of education.” The PHEAA was, for a short while, my loan servicer. DeVos made millions while arguing forcefully against student loan forgiveness. She now is back under the rock she came out from under. A very fancy rock to be sure.

But, in good faith, I was paying off my debt. All I asked is that the servicer find me a level I can afford and I will pay it until its paid off or Doomsday arrives, whichever comes first. We all got a reprieve when Covid hit and payments were suspended. According to Mohela, a new loan servicer that picked up my account under President Biden’s watch, when my future payments resumed, I would be billed $1,963 a month. My Social Security deposit (I am 72 and retired) each month is $1,940, slightly above the average Social Security check of $1,701. My wife, who volunteered to go on this journey with me, gets $1,240 a month, below the national average because her working years were spent with childbearing and childcaring and household management, none of which enhanced her Social Security benefits. I am disabled and my wife in a Type 1 diabetic and breast cancer survivor. It’s ludicrous to think that a retiree should remit his Social Security check to the government which deposits it into his credit union account every month. But there you have it. Then again, we have GOPers who believe that Americans should not be allowed to retire at 65 or should never retire and, if they do, don’t deserve the funds that came from their paychecks for 40 years.

The Supreme Court aided by GOPers such as Wyoming's entire Congressional delegation and Governor Gordon, stymied Biden’s forgiveness plan so he found new and interesting ways to relieve the burden of millions, many of whom are senior citizens. Because I made a certain number of payments and loans older than 20-25 years were considered time enough to pay, I was forgiven. My loans were 30 years old. I also worked in public service so I was credited with monthly payments I made which go toward forgiveness. All of Biden’s positive ideas to solve this crippling debt were fought by Republicans because CRUELTY is their middle name. Also, they despite higher education, education of any kind – witness the New College fiasco and GOP-mandated public education requirements in Florida. GOPers, even Harvard-educated ones such as DeSantis, have used the loan forgiveness issue as another cudgel for the MAGA crowd to use against the so-called elites.

I send thanks to Pres. Joe Biden and his allies. 

Remember that the Loan Forgiveness Program could be reversed if the wrong people take control of governance in 2024. 

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