Actually, let me just show you some math. Actual total of loans doesn’t really matter above a certain point to be honest because the interest grows faster than you can pay them, so lets say you’re on that sinking ship, where the payment amount to actually pay them off would mean paying something like 2700 a month. obviously not gonna happen. So you’re on an Income Based Repayment Plan with your borrower. You can be asked to pay between 10 and 20% of your net income (depending on many factors)
Lets say you’re a single human person, working a good job, 60k a year; after tax, you have around 45k. Under Biden’s plan, they start by taking 25k of that, putting it to the side and removing it from the calculus. Then. they take an amount off for essential spending. Don’t know what that math works out to yet, so lets assume someone awful gets to decide it, and its 12.7k a year (the poverty line for a single human) Then, they only can bill you for 5% of the remainder. So.
20k - essential spending = 7.3k
$7300 x 5% = $365 a year -or- $30 a month
Sure, Strife, that’s a pipe dream, you say, what happens if the ‘essential spending’ part dies in congress? Fair point, Congress is a sinkhole of evil. But lets see:
20k x 5% = $1000 a year -or- $83 a month
Yeah, you say, but I’m a curmudgeon and I want to assume the worst because I hate politicians, what if they lose the threshold, and only get the 5% through and everything else stays exactly the same?
In that case, it will straight up cut everyone’s payments in half. Minimum. Whatever you’re paying now? Half that. In the case of the example above, that means
45k x 5% = $2250 a year -or- $187 a month
So this guy is out here going after free college for the younger parts of GenZ and all of our kids. AND he’s going to make the loans we have into a much more bearable burden. PLUS. If you didn’t see up there? That he’d kill the taxes paid on forgiven loans? Yeah, that’s a thing right now. If you pay for 20 years, and end with 60k in loans to be forgiven, you pay taxes on the 60k all at once. Which means you owe the government around 15k. Which. Ironically. Usually means you have to take out another loan.
And this would apply to everyone, you can opt out if you wanna clear yours sooner, but you don’t have to do the jump through hoops and beg routine like you do now.
This is a really really really good plan, folks, please look at something other than tumblr and fb, please look at his website, there’s some really good stuff in there. If you don’t understand, ask for clarification, bc there is so much good.
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