Because by federal law, school loans are the only loan in this country you can't bankruptcy your way out of, you can't refinance at the source. They literally follow you to the grave. Those two 'features' of school loans were put in place by the same entity that is directly responsible for jobs and an economy that in itself is directly responsible for jobs that didn't require a college degree for a decent wage leaving the country, and pushing the "need" for a college diploma on people that by definition and design are uneducated both in the wants and needs of the workforce and the nature of loans/finance.
sorry for the multiquote...a lot to address
You can have a student loan discharged...it isn't easy but it can be done -
Federal Student Aid - it sounds like if they are encountering the challenges you list in section 3 below, they would certainly qualify.
Your use of the word "entity" leaves questions. You mean the government? You are faulting the government for "forcing" people to take out loans because the government said they would need a college degree to be successful? When these adults took out their loans, did they follow the Dept of Education's list of most marketable jobs? Or did they major in areas like feels and social justice? I challenge you to find a STEM graduate working as a barista because they can't find a job they are qualified for (and can pass a drug test). If you find any engineers, let me know. Our company is giving bonuses if we bring in engineers!
And your point about these people being "uneducated both in the wants and needs of the workforce and the nature of loans/finance" falls flat if you argue that they listened to the government on the importance of an education but failed to do any research on what to get an education in. They FAILED to research. What if we changed the system so that FED loans only go to people who commit to a career in a field that is expected to be well-employed? Find a list like
12 Best Jobs For The Future [Careers that Will be in 2030] and the gov't makes them sign a contract before issuing the loan?
And honestly im tired of hearing people talk about how this will be such a drag on the american taxpayer. As the american taxpayer sends BILLIONS to Ukraine so that the U.S. can secure access to the lucrative resources of another country for people that are way out of the tax bracket of the people actually paying for it. Or as this country spends TRILLIONS on non-stop conflicts in the middle east that have nothing to do with national safety for this country or our allies, or the BILLIONS spent on development of weapons systems that never see production, let alone the battlefield and nobody bats an eye about it, and those are just a few examples of the wasteful bullshit this country spends massive amounts of money on without flinching.
100% agree that the government feels it can spend BILLIONS on other people's wars, international aid, and many other things (like $80B to the IRS) but can't invest money into our country. Imagine making all trade schools FREE to anyone who can meet enrollment requirements!! I applaud your desire to help internally first. But what about the kid who is a high school senior this year? They still have to take out loans...who pays those off? Do they take out the loans thinking "the dems will bail me out if I promise them my vote in 4 years"? You advocate spending money to cancel debt, but I think they should change the system FIRST or you are only putting tape over crack in the dam.
Right now we have at least 2 generations of people that will never be able to buy a house, car, or really make any larger purchases, just a few things they won't be able to do until much later in life, if at all, that have a direct positive effect on the economy as a whole. In short, forgiving the loans, which are primarily coming from predatory 'schools' (also allowed and encouraged by that same government) that fed those students bullshit about the big money they would be getting after they got skullfucked for 2-4 years, will help every single swinging dick that is standing here bitching about how terrible forgiving those loans will be to them.
Here is where you lose me. The plan is anyone making less than $125k. Why not $50k? Are there recent grads (less than 5 years out) making $100k? I know there are, because I hire them. They can afford to repay their loans. The person making under $50k? I can accept that. You think that if a person making $50k doesn't have to pay their student loan back (well, $10k of it), it will have a positive effect on the economy? This move will cost around $300 BILLION. Look what the past year of spending did the the economy. Spending you admit was wrong. Your acceptance that "meh, it's just another $300B" is part of the problem.
I respect your position - I do. I think the problem is the system and it should be fixed first. Failing to do that insults the millions of americans who paid off their loans and fails the students who will take loans out in the future. This is purely a political stunt. If you can't see that, then I am sorry for you.
You argue the government is responsible for ensuring people are aware of their choices and making sure they are educated on their options. What is the government teaching kids by paying off these loans?