Student Loans: Last Week Tonight with John Oliver (HBO)
Summary
TLDRThe video script discusses the overwhelming issue of student loan debt in the United States, highlighting the massive scale of the problem with over 43 million Americans欠着1.7万亿美元的债务. It touches on past and present attempts to address the crisis, including Biden's plans and the role of student loan service companies. The narrative emphasizes the impact of policy choices and the rising costs of education, culminating in the call for comprehensive debt relief and accessible, affordable higher education for all.
Takeaways
- 🎓 Student loan debt is a massive issue in the US, with over 43 million Americans owing a total of $1.7 trillion.
- 🍔 Fast-food chains like Burger King and KFC have attempted to tackle the student debt problem with promotional campaigns.
- 🚫 Joe Biden's plan to erase over $400 billion in student debt was struck down by the Supreme Court.
- 📈 The cost of college education has steadily increased, making it difficult for students to avoid taking on significant debt.
- 🏛️ States have reduced funding for public colleges and universities, leading to increased tuition and fees to cover the gap.
- 🏢 Universities have increased spending on amenities to attract out-of-state and international students, who pay higher tuition.
- 💸 Student loan services, which are meant to help borrowers, have been criticized for poor customer service and making the repayment process more difficult.
- 👨🎓👩🎓 Borrowers with smaller loan amounts often struggle more with repayment, and the system is particularly hard on those who took on debt for degrees that are not traditionally high-paying.
- 👵 Even retirees are affected by student loan debt, with some having taken out Parent PLUS loans on behalf of their children.
- 🤝 There are programs to ease the burden of student debt, but they are often complicated and poorly administered.
- 🎉 Despite challenges, the Biden administration has managed to forgive billions in student loan debt through various programs.
Q & A
What was Burger King's initiative to help with student loans?
-Burger King had a program called 'Whopper Loans' where they offered to repay up to $500 of some people's student loans, promoting it with a video of their mascot using a flamethrower to incinerate loan documents.
What was the unique contest held by KFC to honor its founder?
-KFC held a contest where they offered $11,000 in college tuition to the first baby born on September 9th named Harland, in honor of the founder Colonel Harland Sanders, whose birthday was on that date.
How many Americans have student loans and what is the total outstanding debt?
-Over 43 million Americans have student loans, which is about 133% of the US population, with a total outstanding debt of $1.7 trillion.
What was the initial purpose of the GI Bill and how did it evolve over time?
-The GI Bill was initially introduced to provide federal money for higher education, particularly for veterans. Over time, lawmakers expanded federal funding for education, leading to the creation of various loan programs for students in different fields of study.
What policy changes contributed to the rising cost of college education?
-After the 2008 financial crisis, states began slashing funding for public colleges and universities, leading to significant increases in tuition and fees to cover the funding gap. This dynamic, along with universities competing for out-of-state and international students, contributed to the steady rise in the cost of college education.
How has the existence of the student loan industry affected tuition costs?
-The existence of the student loan industry has contributed to a vicious cycle of rising tuition costs and higher debt loads. Universities have been able to charge higher tuition fees, knowing students can take on more debt to cover these costs.
What is the impact of student debt on individuals' personal and financial decisions?
-Student debt can make it difficult for individuals to plan for their future, affecting decisions such as buying a home, starting a family, or pursuing certain careers. It can also lead to long-term financial strain and stress.
What are some criticisms of the student loan forgiveness program?
-Critics argue that student loan forgiveness unfairly benefits those who took on debt for degrees that may not lead to high-paying jobs, and that it shifts the financial burden onto taxpayers. They also question why student loans should be forgiven when other types of debt, like car loans or home loans, are not.
What issues have been reported with student loan service companies?
-Student loan service companies have been criticized for providing bad information, mishandling payments, and making the process of navigating the system more difficult. Some have been reported to steer borrowers into forbearance, which can lead to higher overall debt, rather than helping them enroll in income-driven repayment plans or public service loan forgiveness programs.
What actions has the Biden administration taken to address student loan debt?
-The Biden administration has forgiven nearly $12 billion of debt for borrowers with disabilities and over $56 billion for nearly 800,000 borrowers through adjustments to existing programs. They have also implemented the REPAYE plan, a retooled version of income-driven repayment, which has the potential to wipe clean debts for many borrowers after 10 years of payments.
What broader issues need to be addressed to tackle the student debt crisis?
-In addition to addressing the existing student debt, there is a need to tackle the high cost of college education. Proposals include making college tuition-free and holding colleges accountable for a portion of the debt when students default on their loans.
Outlines
🎓 The Student Loan Crisis
This paragraph discusses the massive issue of student loan debt in the United States, highlighting the staggering numbers of Americans affected and the total debt. It mentions the government's failed attempts to address the issue, including President Biden's plan that was struck down by the Supreme Court. The paragraph also touches on the personal struggle of one individual with a significant student loan balance and the broader implications of this debt on society.
🚀 The Origins of Federal Student Aid
This paragraph delves into the history of federal student loan programs, starting with the GI Bill and moving through various expansions under different administrations. It discusses the evolution of these programs, from targeted loans for STEM fields to broader availability regardless of study area, and the introduction of income-based repayment and national service options. The paragraph also points out the unintended consequences of these policies, which have contributed to the ballooning of student debt.
📚 Rising Tuition and the Role of Public Funding Cuts
The paragraph examines the factors contributing to the rising cost of education, particularly the cuts in public funding for colleges and universities following the 2008 financial crisis. It describes how these cuts led to increased tuition fees to cover the gap, and how universities responded by attracting out-of-state and international students with expensive amenities. The paragraph also criticizes the privatization of public higher education and the impact of these trends on student debt levels.
🤔 The Burden of Student Loans
This paragraph explores the personal impact of student loan debt on individuals, including the difficulty of understanding the financial commitment at a young age and the long-term consequences on life decisions such as starting a family. It highlights the barrier student loans can create for career opportunities and the challenges faced by those in lower-income jobs who are disproportionately affected by the debt burden.
👨🎓 Misconceptions and the Realities of Student Debt
The paragraph addresses common misconceptions about student loan borrowers, clarifying that those with the highest debt are often not the 'rich kids' but individuals who pursued higher education in fields that are essential but not traditionally high-paying. It also discusses the Parent PLUS program and its impact on older Americans, who take on debt on behalf of their children, sometimes leading to retirees carrying significant student loan burdens.
🤝 Efforts to Ease the Student Debt Burden
This paragraph outlines the efforts made by the Biden administration to provide relief for student loan borrowers, despite the challenges faced in Congress. It details the successful forgiveness of billions in debt for borrowers with disabilities and those in public service, as well as the introduction of the REPAYE plan, which offers potential relief for many others. The paragraph emphasizes the historic nature of these actions and the ongoing need for comprehensive solutions to the student debt crisis.
Mindmap
Keywords
💡Student Loans
💡Debt Forgiveness
💡Income-Driven Repayment
💡Public Service Loan Forgiveness
💡Parent PLUS Loans
💡Student Loan Servicers
💡Tuition Costs
💡College Affordability
💡Economic Barriers to Entry
💡Financial Future
Highlights
Student debt is a massive issue in the United States, with over 43 million Americans having student loans, totaling $1.7 trillion in debt.
Burger King and KFC have both run promotions offering to repay student loans as a marketing strategy.
The current student loan system can feel overwhelming, with some individuals paying for over a decade and still owing a significant amount.
President Joe Biden's plan to wipe out over $400 billion in student debt was struck down by the Supreme Court.
The Federal Loan program has expanded significantly since its inception, contributing to the current student debt crisis.
States have reduced funding for public colleges and universities, leading to increased tuition and fees to cover the gap.
Universities have increased spending on amenities to attract out-of-state and international students, who pay higher tuition rates.
Student loan services, which are meant to help borrowers, have been criticized for poor customer service and making the repayment process more difficult.
Some government programs aimed at easing student debt are complicated and poorly administered, leading to high denial rates for loan forgiveness.
Parent PLUS loans allow parents to take on debt on behalf of their children, leading to some retirees being burdened with student loans.
Student loans are difficult to discharge through bankruptcy, making them particularly burdensome for borrowers.
The current system creates barriers to entry for many jobs, requiring a college degree even for positions that could be performed without one.
Borrowers with smaller loan amounts often struggle more with repayment, and may not have completed their degrees.
The cost of college in the United States is a central issue that needs to be addressed to prevent further accumulation of student debt.
President Biden has managed to forgive nearly $12 billion of debt for borrowers with disabilities and made adjustments to Public Service Loan Forgiveness.
The new SAVE plan lowers eligibility requirements and could wipe out debts after 10 years of payments for those who borrowed less than $122,000.
Biden's administration has relieved $138 billion in student loans for 3.9 million people, more than any previous president.
There are proposals to address the high cost of college, including making tuition free or holding colleges accountable for student debt when students default.
Student debt disproportionately affects black borrowers, who are more likely to take out loans and carry larger average debt.
Transcripts
our main story tonight concerns student
loans the biggest thing you leave
college with besides a diploma and a
drinking problem student debt is such a
massive issue in this country that a few
years ago Burger King had a program
dubbed Whopper loans where lucky people
could get up to $500 of their loans
repaid which they promoted with video of
their mascot incinerating loans with a
flamethrower and just the year before
KFC did this if you name your baby
Harland you could win $11,000 in college
tuition all part of a contest by KFC to
honor its founder Colonel Harland
Sanders the chain will give the prize to
the first baby born on September 9th
named Harland September 9th was the
Colonel's birthday in the $1,000 is a
nod to his chickens 11 herbs and
spices okay first that laugh is
delightful but also someone actually did
that they named their baby Harland for
$11,000 in college tuition money which
is dark but to be fair harland's not the
worst baby name the worst name would be
Derek think about it you saw a baby with
cheeks like clouds and an innocence
unparalleled and you thought that's
Derek that's my little second string
lacrosse player I can't wait to hold
that junior sales associate in my arms
but as wild as those offers are you can
see the appeal currently over 43 million
Americans have student loans that's
about 133% of the US population for a
total outstand standing debt of $1.7
trillion that's higher than the GDP of
Australia one of the countries you
know sometimes to illustrate a point I
have to use a country like Estonia and
you have to infer from my tone whether
that means a number is big or not but
now because I've successfully
traumatized you over the years you're
probably wondering is that really
Estonian I don't know you tell me maybe
you should have paid more attention to
that school that you paid so much
money
for and for many struggling to pay their
student loans the debt can feel
overwhelming I started with 80,000 I
have been paying for 10 years the grand
total is I have paid
$120,000 and I still owe
$76 how the is this possible that
is the appropriate response no one
should be working for 10 years only to
end up worse off than when they started
I mean physically worse sure that's a
given it's completely understandable but
not financially now you might remember
Joe Biden campaigned on tackling student
debt but his most ambitious plan to wipe
out over $400 billion of it was struck
down by the Supreme Court last summer
another Banger decision from the gavl
gang who are really playing the hits
these days honestly you guys should
probably take this show on the road and
if you do I've actually got the perfect
Tor buus for another 48 Hours it can be
yours well one of yours if the rest of
you get invited in is kind of up to him
and for many on the right the Court's
decision was a good thing because all
along the very idea of student loans
getting forgiven had made them Furious
he may pull the trigger tomorrow on even
more student loan forgiveness for
pointless useless baloney liberal arts
degrees like the cultural significance
of soap operas why stop it student loans
why not pay off people's car loans their
home loans their loans to get a tattoo
why should I have to pay for my
neighbors's dumb daughter who went to I
don't know grad school for anthropology
who just backed her car into my car and
didn't leave a note uh-uh I'm not paying
for that wow what a bunch of weird
madeup followed by one thing
that definitely did happen I'll be
honest I've never considered how that
cufflink of a man has neighbors he lives
in a community among people have to see
him on the street and at the store and
yet he thinks someone hit his car by
mistake and there's only one suspect
that's absurd the whole town probably
takes turns driving into his car also
for the record Jesse wter went to a
private liberal arts college in
Connecticut which really shouldn't be
surprising that is the most Connecticut
face I've ever seen season five
Rory Gilmore would have wrecked her
whole life for him but for all the scorn
heaped on people who took on student
debt it's worth noted that this number
only got so big because of a lot of
shortsighted policy choices over the
years in fact one of of the original
architects of the Federal Loan program
back in the 60s was asked a few years
ago how she thought her proposal turned
out and she said quote we unleashed a
monster so given that tonight let's look
at that monster how it got so big and
what we can do about it and let's start
with how we got here because there's two
key issues that got us into this mess
the first is the Loan program itself
Federal money for higher education
really started with the introduction of
the GI Bill for years after it lawmakers
argued unsuccessfully for more Federal
funding for education then Sputnik
happened and suddenly everyone from
Eisenhower on down decided that
scientific education was key to keeping
up with Russia Eisenhower signed the
National Defense Education Act which
created the first Loan program for
students who wanted to study math
science and engineering and over the
years one president after another
expanded the program LBJ opened up
lending to more people regardless of
their area of study Nixon launched P
grants and created Sally May and Clinton
started the process of Shifting away
from Banks issuing student loans to
having them come directly from the
government all while pushing repayment
ideas like this the Democrats ought to
be for a program that gives every
American person the chance go to college
and help for everybody who needs it and
they should pay the money back in one of
two ways either is a small percentage of
their income over a long period of time
or by giving three or four years of
their lives back to their country
through National Services teachers our
policemen our family service workers
sounds pretty good you in exchange for
an education graduates could give back
by doing two of the hardest jobs I can
imagine and one that's mostly staring at
your phone in the New York
subway under Clinton and later Bush we
actually passed versions of that
proposal pegging student loan repayment
to income or national service and some
of these tweaks genuinely had the goal
of making access to education easier but
the only thing they definitely made
easier was ensuring that anyone going to
college could now access an absolutely
massive line of credit and theoretically
that would have been manageable so long
as the price of college didn't get out
of hand but that brings us to this
second issue because up until the
pandemic which brought tuition freees
the price of an education crept up
steadily over the years it's now at the
point where the average net cost of
attendance for instate students of
public schools that is after subtracting
financial aid and grants and in cost for
things like housing food and books is
around
$20,000 per year and while a lot of
factors contributed to that rise one key
one was a dynamic that accelerated after
the 2008 financial crisis when states
began slashing funding for public
colleges and universities where the vast
majority of us students go now
understandably those declines in funding
were followed by large increases
intuition and fees to cover the Gap here
was the former head of LSU in 2016
explaining how in just a few short years
the ratio of what the government pays to
what students pay had shifted there I'd
say in 08 we were 7030 70% State 30%
student we're 8020 right now 80% student
20% State we're quietly privatizing
public higher education throughout the
country the children in elementary
school are not going to have a public
affordable option by the time they get
out of high school it's true and you can
frankly add that to the list of things
that elementary school children aren't
going to have by the time they're 18 the
list is now affordable public College
Summers below 100 degrees and their
grandparents probably sorry kids olds
die and when that reporter asked the
then governor of Louisiana to justify
those cuts his response was less than
inspiring I have a constitutional
obligation to deliver a balanced budget
and the cuts have to come from somewhere
so the cuts are coming at the expense of
higher education and also at the expense
of students in order to keep those
universities a float students have
access to money so do lawmakers think
well we won't put money toward this cuz
we know that students can take out debt
and pay for their education that way
well obviously uh that is happening to
some degree not just in Louisiana but
around the country and I find it very
troubling yeah we're robbing our
children to pay for our budget on one
hand I guess he's being honest there but
that is still one of the worst things
I've ever seen come out of Louisiana
with the best of course being M Jac the
statue of a frog in a top hat from the
city of rain now does it look like the
placard in front of him is blocking his
enormous frog dick yes yes it does is
there a photo where it doesn't look like
that no my friends there is not so
public universities were struggling for
funding and many responded by ramping up
spending which might seem
counterintuitive Until you realize that
you can charge tuition almost three
times higher to out of state or
International students than instate one
so colleges now compete to lure those
students in with expensive amenities
from state-of-the-art student centers to
rock climbing walls in fact one of the
most potent symbols of those spending
Wars is actually at LSU itself wow there
it is lifeguards and everything students
at Louisiana State University can now
enjoy a 500t lazy river that spells out
LSU hey
lifeguard are you a student here too yes
sir so you're paying for this you're
paying for the Lazy River yes I pay for
this into my okay first stop yelling at
that student through a fence he's busy
at work being paid to watch the river he
paradoxically funds second not a river
shame but that has too many curves the
whole point of a lazy river is to get
day drunk on daddies pass out to an MGMT
album and Vibe you can't do that if
every 5 Seconds you have to navigate the
twists and turns of the letter
s but whether out of necessity or greed
universities basically started turning
their campuses into resorts to justify
taking more money from students and the
thing is even as tuition clined students
didn't stop applying they just kept
borrowing as much as they could so the
mere existence of the student loan
industry has ended up contributing to a
vicious cycle of rising tuition and
higher debt loads all of which has made
it very easy to wind up taking on
debilitating amounts of debt often at an
age where you barely understand
understand what you're getting into it
was just explained to us as everybody
has student loans and this is just
something you do to get ahead in life to
have a drink of alcohol you have to be
21 to take out $100,000 worth of debt
you can be 18 you can do that and I
definitely did not understand what I was
signing up for right that's a huge
burden to take on at 18 and that's
already a difficult age you can't
legally drink you can't stop fighting
with your mom who's being a total
and Leonardo DiCaprio keeps skullking
around your school why add the biggest
financial decision of your life to that
list one borrower said she barely
recognized her own childlike handwriting
on the forms that committed her to
Decades of debt and yet for many taking
it on can seem like the only rational
choice because so many careers are off
limits to anyone who hasn't been to
college even though 2third of
administrative assistants don't have
bachelor's degrees 3/4 of the new job
postings for administrative assistance
say you have to have a bachelor's degree
to be considered for that job so two3 of
the people who currently do that job
can't apply for 3/4 of the new jobs in
the field exactly a lack of a college
degree is a significant barrier to entry
for a lot of jobs and barriers to entry
make sense for some things like
practicing medicine or Guerilla
enclosures but requiring a degree for a
job that can be done without one makes
no sense at all and once you've taken
these loans on even those who can afford
the minimum payment can end up Treading
Water four years here's that woman you
just saw breaking down where her monthly
payments actually go so my total due for
this month
$77 74 what will be applied to the
principal
$645 so the principal is the total
amount of loan like actual money that I
actually took out what will be going to
the interest 600
4320 so my principal isn't going down my
debt isn't going down I'm literally just
paying the interest that is ridiculous
that $650 could clearly be much better
spent on the principal on her loan or
even to buy two cameos from Rudy
Giuliani every month and I I would prove
that to you by buying one but I do not
want to give that man any money so we
got one from Snookie instead who charges
around the same amount
hey Britney what's up mama it's your
girl Snookie and I cannot believe this
video cost half as much as your student
loan interest that's
up yeah it is thank you snooky thank you
very much and as those debts pile up it
is no wonder that for many with student
loans it can feel almost impossible to
plan for a future one of the things that
scares me is becoming a parent I just
got married last year
and my wife is on me like hey you know
I'm ready are you ready and so you know
one I would love to be a parent but then
I look at the the cost of uh child care
and I look at my student loan balance
and it's like then I'm still going to be
balancing do I make my student loan
payment or do I pay child care you know
and I don't want to default on my
student loans but at the same time if
I'm going to become a parent I want to
make sure that my child has the best
life possible and I just don't see how
that's possible with having a student
loan dead hanging over my head yeah
student loans shouldn't determine
whether you have kids it' be crazy if
something the government did influence
your decision to have a child or not
right right that would be crazy right it
would be absolutely crazy and let's
address who gets hit hardest here
because when many imagine the typical
borrower they are picturing the
caricature painted on Fox news or in ads
like this one attacking Biden's debt
relief plan want to be a struggle artist
college is on me my kids don't need
fancy things like school supplies or new
shoes I work for you theater major this
shift is for you business major go buy
yourself that new car enjoy your Free
Ride college is on me tell Congress stop
Biden's bailout for rich kids they're so
right stop paying for rich kids to study
theater what are they going to do with
that degree anyway star in a hack
political ad making fun of anyone who
studies theater go get a real job where
you touch a
wrench but about that bailout for Rich
Kids idea it gets tossed around a lot
when it comes to debt forgiveness which
is a little weird because Rich Kids tend
not to have student debt because their
parents tend to pay for their college
just like they tend to pay for lawyers
to make that thing with the car and the
cyclist go away and and people with the
highest loan balances are often current
on their payments because they may have
gotten Advanced degrees that allowed
them to earn more con verely those most
burdened by debt often have relatively
small amounts of loans that guy was
talking about putting off having kids
he's not in debt because he studied
theater he owes $30,000 from going to a
State University to study accounting he
took the exact path people like this guy
love to cream their chinos over and it
still him over in fact as of 2022
most student loan borrowers with
outstanding debt owed less than
$25,000 and having a smaller debt
doesn't necessarily mean it's easier to
pay off in fact borrowers with the least
debt often had slightly more difficulty
with repayment and that can be for
multiple reasons including that they may
have had to leave school before
finishing meaning they have all the debt
but no degree to show for it and it gets
even worse because increasingly it's not
just young people taking on student
loans that is thanks to yet another
Federal program called Parent PLUS which
allows parents to take out a student
loan on their child's behalf but these
loans are even riskier they have
effectively no income requirements and
no limit on borrowing and that means
there are increasing numbers of retirees
saddled with student debt on behalf of
their kids like this 80-year-old man
this is my son he graduated in 2008 from
Bridgewater College with a degree in
biology I didn't want him to be stuck
with having the debt that a lot of kids
have when they get out of college so I
assumed that loan the parent plus loan
that I took out was through the
Department of Education I think I
started in
2004 I'm still paying it and um
according to naviant I'll be done in
2040 you know what I kind of like about
that the slight laugh in his voice at
the end there that is the chuckle of a
man who knows he'll be dead long before
that loan gets paid back that is a man
laughing in the face of God and
government and death might actually be
the only option to get out from under
these loans because as we've discussed
before on this show student loans are
extremely difficult to discharge through
bankruptcy they're actually something of
an outlier in that regard as this
professor explains if I were to go uh
and lose all my money uh at the gambling
casino I can declare bankruptcy if I
were to you know be a criminal and do
some horrible thing I can declare
bankruptcy students are not allowed to
declare bankruptcy that is true and
while I appreciate the hypothetical
there it is a little hard to imagine
this guy blowing his life savings at a
craps table I'm just saying the very
fact that he called it a gambling casino
proves he has never been inside one so
this entire system seems practically set
up to drown people in debt but there is
one more player that we should mention
here and that is student loan services
you might know them by names like these
and if you know who these companies are
you probably hate them services
like these manage loans on the
government's behalf and in theory
they're supposed to help you navigate
the system but in practice they often
manage to make things much worse a
report found some companies have builded
people for the wrong amount given them
bad information and subjected them to
incredibly long hold times on the phone
with one borrower waiting
565 minutes to speak to a representative
and that incompetence is a real problem
because the government does have
programs to ease the burden of student
debt remember the ones that you saw Bill
Clinton described earlier where your
debt can be reduced based on income or
public service those actually do exist
but unfortunately the government
designed them in a very complicated way
and their implementation is in the hands
of these companies take this woman she
was enrolled in a program where after a
decade of Public Service her loans would
be forgiven she spent her decade serving
in the military and nine years in having
autoaid on time every month she assumed
she was nearly done but when she called
her servicer fed loan they told her that
she'd only been credited with one year
of payments so still had nine left and
when she asked why their response was
maddening the woman looked through my
account she say you may have an issue
that we know is an issue where the auto
deit takes the payment but one penny
short of what is actually due so it
doesn't count I submitted my case for
review and it sat in review for 3 years
and in the interim I was paying because
you're like okay well they're reviewing
it they're doing something but it the
review never 3 years later it was still
under review hold on we may have
undercharged you by one penny so the
payment doesn't count in no other
transaction would that be acceptable if
you buy a shirt that's $9.99 and the
store only charges you $9.98 the cashier
can either let it go or say you actually
still owe us one penny but at no point
would they be allowed to say sorry your
payment doesn't account give us $10
again and she's not alone a goo report
found that that loan forgiveness program
had a denial rate of
99% a similar thing happened with income
driven repayment plans which provided
that if your income was below a certain
level and you made 20 to 25 years worth
of payments your loan would eventually
be forgiven which sounds good but again
the program's mechanics were very
complicated and services things
up government reviews found that some
steered borrowers into something called
forbearance instead which basically hits
paws on your loan but allows interest to
keep accumulating that is exactly what
this woman says happened to her for
months now Julie Alysia has been
desperately trying to take control of
her mounting student loan debt it's now
in the tens of thousands and it's crazy
cuz I'm trying to pay but she says her
loan serer naviant is not helping she's
been trying to apply for an income-based
payment plan but instead the company
steers her towards a costly forbearance
and won't send the paperwork she needs I
requested income repayment program
assistance and I'm still waiting since
like early summer last year that is
absurd she's actively trying to make
this situation better and they're not
helping she's taking it so seriously
she's wearing a headset on the
news which I presume it's cuz she's
having to be on hold with navian every
waking moment of her life but
even if you manag to get enrolled in a
program progam and jump through all the
Hoops for two decades your servicer
still might screw it up an investigation
a few years ago found some Services
weren't clearly tracking borrowers
payments toward the program and had no
idea when borrowers qualified for
forgiveness which may help explain why
as of 2021 despite the fact that 2
million borrowers have been enrolled in
income based repayment plans for over 20
years only 32 had successfully canceled
their loans not 32% 32 people this
program has only worked for a single
season of Bachelor contestants and
honestly chocking it up to companies in
competence might be too generous here a
whistleblower who worked in customer
service at naviant has said that one
major metric employees were grant were
graded on wasn't how helpful they could
be to customers but how fast they could
get them off the phone part of our
training was keeping your calls to 7
minutes if I don't keep my call to 7
minutes I have a lower status at the end
of the day I'm considered not having
performed as well a few of my co-workers
said that there was just no way to
answer all of those questions in a way
that was satisfactory and maintain the
numbers that we were maintaining and so
they would be on their call and then
they would just press a button and go
oops wow oops that is not good and I
should say naviant denies putting time
limits on calls and also denies steering
customers into forbearance in fact they
have a whole statement here that
apparently I have to read you except
oops oh I dropped it it turns out you're
right navian it's so easy to
do now the good news is navian contract
with the government has since expired
unfortunately many of many of their
accounts were transferred to moila which
doesn't seem to be much better it was
recently found to have failed to send
billing statements on time to 2 and a
half million borrowers and over 800,000
were delinquent on their loans as a
result and when you take everything
you've seen tonight together it is
really hard to feel like this system
isn't rigged we've been you know told
workingclass people that as long as you
get an education then you will have job
prospects you'll be able to take care of
your family you'll be able to have a
future I really used to blame myself a
lot and I used to feel a lot of Shame
and then I started to look at the
policies and I'm like wait a second is
it personal responsibility or is it
really bad policy and I realize it's bad
policy straight up she's right we've set
up a system where we've created a
barrier to entry for many jobs that can
only be passed by taking on some of the
most debilitating loans with the least
protections administered by some of the
shittiest companies on Earth and all of
this is particularly cute for black
borrowers who are more likely to take
out student loans and carry the largest
average loan debt of all demographics so
what do we do well personally I would
argue that Congress needs to pass
massive debt forgiveness but I know that
is a hard sell in that building given
that some of its members have sat in
hearings on the student debt crisis and
said like this I'm a small business
owner back in Texas and in my world uh
if you borrow the money you pay the
money back pure and simple that's an
interesting point from a man whose
eyebrows seem surprised to be on his
actual face but on one level I do get
that argument it's just it's a little
hard to take coming from him as at the
start of the pandemic he's small
business received a $1.4 million PPP
loan and guess what he didn't then do
pay it back he also happens to be one of
the wealthiest members of Congress so I
think we may have just found an actual
bailout for the rich here someone should
tell that man who definitely knows how a
Car Works he's going to be so
mad that is the thing here for all the
populist speecher find it's essentially
boils down to how dare you spend money
on something that benefits someone who
is not me the government spends money
all all the time on all sorts of things
to benefit select individuals because we
think there is a net societal benefit
from forgiving loans to small businesses
to subsidizing Corn Farmers to giving
homeowners massive tax breaks to
building stadiums I don't love spending
money on all those things but if you do
it feels pretty weird to suddenly draw a
hard line at student debt and what we
wait for Congress to pass comprehensive
debt relief I do have some good news
because while the Supreme Court struck
down Biden's big 400 billion dollar plan
to his credit he's managed to get other
meaningful Solutions through by tweaking
existing programs under his
administration we've forgiven nearly 12
billion of debt for borrowers with
disabilities and through adjustments to
the Public service loan forgiveness
program another 56 billion for nearly
800,000 borrowers that is significant
for those benefiting from it everything
says pain B the relief and celebration
came in a flurry I've been paying on
student loans for 38 years zero balance
to see Zero I'm used to seeing Zero in
my checking account not my student loans
or credit card or anything like that so
it's shocking that is great and it's
honestly the sort of thing that calls
for a message of congratulations and
luckily I haven't to know just the
person to deliver it hey Sarah I'm so
glad your student death is all gone
congratulations
M thank you again Snookie
m look if you personally have student
debt it's worth knowing this
Administration is currently rolling out
the save plan a retooled version of
income driven repayment which does look
promising it lowers eligibility
requirements and ensures that for anyone
who borrowed less than $122,000 their
debts would be wiped clean after 10
years of payments you can go to this
website to see whether you're eligible
and how much it might save you and I'm
not saying it's perfect for start it'll
have to be administered properly and
remember these are still
involved but in just its first few
months the safe plan has relieved a
total of $1.2 billion for 150,000
borrowers in fact if you take everything
Biden's Administration has done together
he's managed to relieve 138 billion in
student loans for 3.9 million people in
just three years that is more than any
president in history and look I know we
are talking about ban Aid Solutions here
even if we got rid of all the problems
with the surfaces that won't address the
giant pile of debt that people owe and
even if we got rid of that that won't
fix the central problem that the cost of
college in this country is absurd and
there are proposals to deal with that
each with pros and cons from putting
colleges themselves on the hook for a
portion of the debt when students
default on their loans to making College
tuition free and I'm sure that we will
discuss them at another time because we
do need to tackle the cost of college
and for everyone's good and I'm not
saying college is the right choice for
everyone but it should be a choice can
unlock a lot of opportunities and be a
net benefit to all of us so it should be
affordable for everyone regardless of
what you study whether you're a medical
student a business student or a certain
anthropology student heroically ramming
into your neighbor's car A
Grateful Nation thanks
you
5.0 / 5 (0 votes)
![](https://i.ytimg.com/vi/uaTWUAC2Xg0/hq720.jpg)
I Hate That I Love The Apple Vision Pro
![](https://i.ytimg.com/vi/k5abCDqzdhM/hq720.jpg)
Why A $100,000 Salary Can’t Buy The American Dream
![](https://i.ytimg.com/vi/J6_yPHzNFsc/hq720.jpg)
Tapper presses Crockett over her counterattack about Marjorie Taylor Greene's appearance
![](https://i.ytimg.com/vi/_v_BqUK4BtY/hq720.jpg)
Weekend Update: Trump's Abortion Ban Claims, O.J. Simpson Dies at 76 - SNL
![](https://i.ytimg.com/vi/oWSw8NgRPP8/hq720.jpg)
Trump Lawyers Say He Can’t Make $464M Bond | The View
![](https://i.ytimg.com/vi/vC16NW9Ft2U/hqdefault.jpg?sqp=-oaymwEXCJADEOABSFryq4qpAwkIARUAAIhCGAE=&rs=AOn4CLBS5fjpU21x-n7uZPDwuDKDvOLLvQ)
🔴Trump STORMS OUT of Michael Cohen case + Fani Willis Disqualification Update!!