Buttigieg's high college debt draws attention to the issue

[TexasTowelie]

PROVIDENCE, R.I. (AP) — Democratic presidential candidate Pete Buttigieg knows firsthand the burden of six-figure student loan debt. He and his husband, Chasten, are far from alone, though, and their personal college indebtedness is helping to keep the issue on the national stage.

With loans totaling more than $130,000, they are among the 43 million people in the United States who owe federal student loan debt.

The debtors are so numerous and the total debt so high — more than $1.447 trillion, according to federal statistics — that several of the Democratic candidates have made major policy proposals to address the crisis. Their ideas include wiping away debt, lowering interest rates, expanding programs that tie repayment terms to income and making college free or debt-free.

Student loan debt is often discussed as an issue that mostly affects millennials, but it cuts across age groups. Federal statistics show that about 7.8 million people age 50 and older owe a combined $291.9 billion in student loans. People age 35 to 49, a group that covers older millennials such as Buttigieg as well as Generation X, owe $548.4 billion. That group includes more than 14 million people.

Read more: https://www.sfgate.com/news/education/article/Buttigieg-s-high-college-debt-draws-attention-to-13962142.php

[James48]

1. Carefully study this-

I’m fine with programs to reduce interest rates to ultra-low or zero interest. I’m fine with offering debt relief in exchange for public service work.

But I’m not ok simply with wiping it all away, period. There has to be a way to make college much more affordable, and debt to be much less of a burden, BUT students need some skin in the game somewhere.

I’m very happy if, for example, graduates spend a year public service student teaching, to help the next generation, In exchange for relief of 75% worth of one years worth of debt. Or serving in the military, or Public Health Service, etc.

[SMC22307]

11. I agree with this... some sort of public service. (n/t)

[namahage]

15. There currently is a program that helps those who do public service.

https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service

The PSLF Program forgives the remaining balance on your Direct Loans after you have made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer.

...

To qualify for PSLF, you must

work for a government agency or for certain types of nonprofit organizations;
work full-time for that agency or organization;
have Direct Loans (or consolidate other federal students loans to qualify);
repay your loans on an income-driven repayment plan; and
make 120 qualifying payments.

...

What is qualifying employment?
Qualifying employment for the PSLF Program is not about the specific job that you do for your employer. Rather, it is about who your employer is. Employment with the following types of organizations qualifies for PSLF:

Government organizations at any level (federal, state, local, or tribal)
Not-for-profit organizations that are tax-exempt under Section 501(c)(3) of the Internal Revenue Code
Other types of not-for-profit organizations that are not tax-exempt under Section 501(c)(3) of the Internal Revenue Code, if their primary purpose is to provide certain types of qualifying public services
Serving as a full-time AmeriCorps or Peace Corps volunteer also counts as qualifying employment for the PSLF Program.

The following types of employers do not qualify for PSLF:

Labor unions
Partisan political organizations
For-profit organizations (this includes for-profit government contractors)
Not-for-profit organizations that are not tax-exempt under Section 501(c)(3) of the Internal Revenue Code and that do not provide a qualifying public service as their primary function

[trc]

18. I am 57 with just over 96k in student loan debt.

I have 5 plus years in the military, spent 3 years teaching 8th grade US history and still have this mortgage payment hanging over my head. The real issue is how much a college education costs to begin with. Used to be a kid could work summers and some part time during the year and get through school debt free. Reagan changed that. So, lets go back to the 80% state funded, 20% student funded financing arrangement. But, if we as a nation decided to forgive all student loan debt for young people under the age of 35 say, or whatever arrangement makes the most sense, our economy would boom because those young people can now buy a house with that mortgage payment they now use on student loans. I believe the numbers are close between the debt added to our national debt from this recent tax rework under 45 and the forgiving of these student loans. Which would have more of a benefit to the average American? The reality is, these kids should never have had to take out these ridiculous student loans just to get an education other countries seem able to provide for much less.

[yaesu]

2. The 2005 bankruptcy bill made it impossible for student loans to be discharged, there is one

candidate who voted for & actively pushed for this big bankster give away. I hope he regrets doing this and will never again put the rich elite above the poor & working class.

[lovesfruit]

3. Student loan debt a serious issue for me

Student loan debt is a really serious issue for me. I don't personally have student loan debt, but my new spouse does. It's not a huge amount, but it will take us about two years to pay off. During that time that we will be paying aggressively toward the debt, we will not be able to save anything toward retirement or toward a house down payment. We also will have to delay starting a family. But we are still better off than many of our peers! We at least have a plan and the means to pay it down fairly quickly. A lot of my friends and colleagues do not. It's not just people in my age group. I know there are a lot of older people who went back to school, or took on parent plus loans to help their children, but now cannot save adequately towards their retirements with these large student loan balances hanging over their heads. What a mess!

I won't personally benefit if there are changes several years from now (like Warren's proposal to eliminate debt), because we will have our loans paid down in two years. But I see how much it will benefit many of my friends or colleagues who have quite a bit more student loan debt. So I'm really happy to see the the student loan crisis is getting a lot of attention.

[gopiscrap]

14. welcome to DU

[PatrickforO]

20. Nice post. I've never quite understood the mentality behind the 'it's not fair' crowd.

Oh, they say, yes...we DO want debt-free college, but we aren't willing to forgive debt of people who currently owe because it's not fair to people who have paid off their loans.

Maybe instead of envying someone else's good fortune, we should rejoice in being able, though good policy, to lift a huge burden off their shoulders. I paid off my own student debt years ago, but I will definitely be willing to forgive yours. This isn't about fairness to individuals, but about good economic and social policy moving forward.

[Boomer]

4. I come from a working class family

In the 1970s, when I entered the University of Texas, the registration fee was just over $100 dollars. My textbooks for the semester cost more than that. I was able to complete both a BA and a Masters degree at Indiana University without ANY debt.

This was a tremendous boost for my life's trajectory after graduation. My first few jobs didn't pay that well, but all I had to worry about was basic living expenses. Fast forward 45 years and I'm doing okay, much better than many around me. This (modest) success was founded on a close-to-free college education. UT may not be the best university around, but it was decent enough to allow me to pass unremarked into the middle-class.

Low-cost college admission is a basic investment in our country's future. It's so disheartening that a debt-free entry into society is not recognized and supported as a strength that benefits everyone.

[George II]

5. He's been Mayor of South Bend for seven years, earning more than $100,000 per year....

That's more than $700,000. He still has $130,000 student debt?

[SMC22307]

7. Tell us more about his complete financial picture, George.

And don't stop with Buttigieg... circle through all of the candidates. If I remember correctly, didn't Barack and Michelle talk about their student debt into their 40s? Factor them in as well.

[George II]

8. Tell you what. Start an OP for each of the candidates' student debt and I'll do that, okay?

[SMC22307]

13. Start with the Obamas, if you would, since they had substantial student debt well into...

their 40s. Or was it 50s?

No wriggling out, George, since this issue is important to you. Or is it?

[Hekate]

17. Pres Obama said they were in their 40s when he wrote a best-seller that wiped out that debt

He stated that in context of the vast problem for everybody else, how it hangs over their lives, and how unlikely it is for aomeone to write a best-seller.

[SMC22307]

19. Thank you, I didn't recall the context. Barack, Bernie...

Last edited Sun Jun 9, 2019, 05:01 PM - Edit history (1)

best-sellers enabled quite a bit financially.

[leftofcool]

9. He also pays taxes on that salary, a mortgage, utility bills, credit card bills, vet bills

car insurance, home owners insurance, property taxes, food, and gas for his car.

[patphil]

12. Look at it this way

That's $100,000 a year of income before taxes.
That may leave him with less than $70,000 to live on after taxes.
In a city, even South Bend, the cost of living is high enough to require most of that money just to live.
I know it sounds like a lot, but Pete's income is really not much more than what is needed nowadays to live in an urban area.
And, the problem with large student debt is the interest on the debt.
You can pay $1,000. a month on the loan and only see a couple hundred applied to the principle.
It's very hard to get out from under that kind of debt in addition to paying all the expenses for just day to day living.
Young people are oversold on the need for a college education, and have no concept of the downside of a college degree; massive debt and jobs that don't pay as much as they hoped to get for the investment in time and money.
It can take decades to pay off a loan of the size Pete has.

This is a serious problem for millions of Americans.

Patrick Phillips

[Crabby Appleton]

16. It's mostly his spouse's debt

[Hortensis]

6. But is it real? Would one of those many corrupt Democrats

some insist government is riddled with STILL be in debt after years in power? There are lots of other Democratic politicians across this nation carrying student debt also, including in congress. Fake debt to hide routine institutionalized corruption?

Members of Congress are rich with student debt

As lawmakers look to reshape the federal loan process in the upcoming reauthorization of the Higher Education Act, a cohort knows firsthand the pain of rising college costs — 68 members, or 13 percent of Congress, reported that either they or their family members are mired in student debt.

Collectively, the 44 Democrats and 24 Republicans have higher education liabilities of $2.5 million, according to recent financial disclosures. The median student loan debt is $15,000, while average debt is $37,000.

Eight members have student loan debt in excess of $100,000. And all 68 have obligations of at least $10,000. ...

https://www.rollcall.com/news/congress/members-of-congress-are-rich-with-student-debt

If this is congress, just imagine in local governments, like Buttigieg.

[Pepsidog]

10. It's immoral. Federal parent plus loan 7.5%.