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. 

An email from President Joe Biden

Received a nice letter from President Joe Biden. It really was an e-mail in letter format with the White House logo as a header and Joe Biden's signature below. It was a fine letter, earnest and believable as is Pres. Biden. A stark contrast to the previous resident of the White House. He was neither. Then again, I never wrote to him. I thought it would be a pointless exercise and the response, if I got one, would also be a pointless exercise. I wish that T's four years in office had been a pointless exercise but it was a daily exercise in greed and cruelty, one not so easy to erase.

I can't find my email to Pres. Biden. I probably thanked him for signing the infrastructure bill. I would like to thank him for signing the Build Back Better Bill but I may never get that chance, thanks to one retro scaredy-cat DINO in West Virginia. I may have thanked the prez for his stalwart response to Covid-19. I really would like to thank him for zeroing out all student debt but that may not happen either. I do thank him for the payment moratorium until May 1. It is a lot more constructive that requesting another forbearance from NelNet or Unipac or one of the many student loan service companies that have ripped us off for decades. A forbearance allowed them to keep adding interest to a burgeoning principal which made the debt even larger but made millions for Nelnet, etc.

Here's the text of the president's email:

Dear Mr. Shay,

Thank you for taking the time to share your thoughts with me.  Hearing from passionate individuals like you inspires me every day, and I welcome the opportunity to respond to your letter.

Our country faces many challenges, and the road we will travel together will be one of the most difficult in our history.  Despite these tough times, I have never been more optimistic for the future of America.  I believe we are better positioned than any country in the world to lead in the 21st century not just by the example of our power but by the power of our example.

While we may not always agree on how to solve every issue, I pledge to be a President for all Americans.  I am confident that we can work together to find common ground to make America a more just, prosperous, and secure Nation. 

As we move forward to address the complex issues of our time, I encourage you to remain an active participant in helping write the next great chapter of the American story.  We need your courage and dedication at this critical time, and we must meet this moment together as the United States of America.  If we do that, I believe that our best days still lie ahead.

Good stuff. I plan to keep in touch, "to remain an active participant in helping to write the next great chapter of the American story." You should do that too. 

Republican Paul Ryan: Heavy on certitude, light on Catholic social justice

As I watched the Veep candidates trade barbs this evening in Kentucky, I couldn't help but wonder what they were like in high school. Lori said that Paul Ryan was called a brown-noser in his high school yearbook. I don't know this to be true but I also don't doubt it. One only has to see his thin-lipped smirk and his beady eyes to know he was a brown-noser, the kind who has his face so far up the teacher's bum that, well, you know....

Joe Biden, on the other hand, was a wise guy, quick-witted and big-mouthed, who might also have been fun to be around. He may also have been the BMOC -- Big Man on Campus -- the guy who got the girls and wasn't too humble about it.

But there's one other thing. Paul Ryan has the certitude and rectitude that makes him unbearable. He's the kind of parishioner who's driven me from the Catholic Church. This is what the Catholic Church believes! I know it in my lily white soul! If you don't like it, you must be one of those cafeteria Catholics. Get out!

So I did. These type of Catholics are insufferable. Certainty has never been a Catholic trait. Joe Biden was right when he quipped that Ryan didn't learn much about Catholic social doctrine with his catechism.

Give me those feisty social justice street-fighting Catholics any day. Or those heady Unitarians or friendly United Methodists or angst-ridden Existentialists or fallen Catholics or Jack Mormons. People who've been through the fire and learned a few things in the process.

Biden has been kicked around some. Lost his wife and daughter in a car crash. Had his son deployed to Iraq. Experienced losses at home and in the Senate. He knows that there's no certainty in life or in politics.

Biden stuck it to Ryan tonight. He probably would have done the same in high school debate, although charm and a big smile doesn't always win points in competition.