Borrowed money – Gaoodgle Tue, 10 Aug 2021 21:10:25 +0000 en-US hourly 1 Borrowed money – Gaoodgle 32 32 Speaker Pelosi scores high on student debt forgiveness. Tue, 10 Aug 2021 20:07:09 +0000

This article is co-authored by Veronica Goodman, Director of Social Policy, Progressive Policy Institute.

Many Americans are struggling with high levels of student debt, and the cost of a college education has soared beyond reason. But Nancy Pelosi was right when she recently questioned the wisdom (and legality) of the federal government to write off the $ 1.7 trillion in outstanding student debt.

For several years, progressives like Senator Elizabeth Warren and Representative Alexandria Ocasio-Cortez, and most recently Senate Majority Leader Chuck Schumer, have pushed for the cancellation of most (and in some cases all of) ) student debt. They point out that the student loan program has placed an unfair burden on Millennials and Zoomers, and that removing that debt burden would free up money for student loan borrowers to spend in the economy.

But such a plan has several flaws in addition to the legal question raised by President Pelosi.

First, there is the issue of fairness. The amount students borrowed to attend college is unreasonable, but should those who borrowed not be held responsible for at least part of the amount they owe? Moreover, isn’t it a better use of taxpayer resources to focus debt relief on those who really need it, and like the Speaker noted “where do we have something that offers an opportunity?” ”

On the other hand, the case for targeted relief is strong. Compared to those who pay out of pocket, people who borrow for degrees are more likely to be low income, black, and have less wealth. These factors make some borrowers particularly susceptible to default, which can lead to deepening poverty and the racial wealth gap. In reality, two thirds of borrowers that the default must relatively low average amount of $ 9,625.

While campaigning for the presidency last spring, President Biden unveiled a plan to forgive a minimum of $ 10,000 per borrower and later said he would submit the plan to Congress for consideration.

That amount could wipe out the debt of 15 million Americans and, together with setting an income threshold for education debt relief, would ensure that the benefits go to low-income households. Without better targeting, debt relief would mainly benefit high-income households, which hold a student third loans and have a greater ability to repay them.

Alternatively, if Congress does not write off the education debt, reforms to the current Income-Based Repayment (IDR) system could provide relief to those struggling to repay their loans. Colleges and universities, which have raised tuition fees beyond the means of most families, should also be asked to help pay down debt for their graduates.

Second, student debt relief is only part of the solution. Policymakers must simultaneously take concrete steps to contain the soaring costs of higher education, or the burden of those costs simply shift from students to taxpayers (70 percent who do not have a college degree to increase their income). Moreover, a massive debt cancellation would send the wrong signal to higher education institutions that would have an incentive to further increase the prices of tuition fees.

Colleges and universities need to come together and commit to lowering tuition fees in the coming years and giving students the opportunity to reduce the amount they have to borrow. This includes the guarantee of a credit of up to two semesters for the successful completion of the advanced internship, the international baccalaureate and college courses taken in high school; and transparent credit transfer from community colleges.

Student loans are a cornerstone around the necks of millions of young Americans, and a burden that must be alleviated. But wiping out all student debt would not only be unfair and costly to taxpayers, it would encourage colleges and universities to keep increasing tuition fees exponentially, avoid making tough decisions about how to cut costs. and, ultimately, weigh on future generations of students. Targeted relief for low-income Americans, coupled with reforms to our existing system and a focus on reducing the cost of higher education, would be a more sustainable and forward-looking approach.

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UNC: government addicted to borrowing Mon, 09 Aug 2021 09:02:34 +0000


Davendranath Tancoo –

Oropouche West UNC MP Davendranath Tancoo said the government has demonstrated reliance on borrowing money and has depleted the resources of the Heritage and Stabilization Fund (HSF) as well as the Consolidated Fund .

Tancoo was speaking at the UNC weekly press conference on Sunday.

The HSF is a sovereign wealth fund and its main objectives are to save and invest excess revenues from oil production to support government spending during periods of declining revenues.

Tancoo said Central Bank Governor Dr Alvin Hillaire recently launched his Financial Stability Report, which said the economy is very strong and resilient.

“The point is, Trinidad and Tobago is in an economic crisis,” he said. “We have a government that depends entirely on the HSF for its foreign currency holdings (FX)

He said this was problematic as the government has yet to find ways to repay the borrowed money in foreign currency. “

He said the government had increased net public debt by 62%, from $ 77.3 billion to $ 125.3 billion in six years.

Tancoo added that “what is even worse than excessive borrowing is that it is largely foreign borrowing.” He said that did not include the $ 1.4 billion loan the government signed in May.

Tancoo said that with all the money borrowed, there had been no significant flow of income. “Having borrowed billions, this government has nothing to show for how it spent them.”

He said Finance Minister Colm Imbert said he took HSF because the covid19 pandemic affected income streams, but in 2015 he said Imbert withdrew more than $ 600 million .

“It’s not a bottomless pit,” he said, adding that the rating of global rating firm Standard and Poor’s (S&P) was based on TT’s confidence that the HSF has a nest egg. “It is ironic that this is the same nest egg that is being reduced by government borrowing.”

He said S&P has also looked at the Consolidated Fund where all government revenue goes.

“The HSF is basically our fixed deposit. The Consolidated Fund is our savings account. The minister has drawn on the consolidated fund as the fund is in crisis.

Tancoo said the government was borrowing to pay off recurring debt.

Also on Sunday, Tancoo accused Imbert of letting TT’s global credit rating drop significantly.

“We are here today in an economy which collapsed under Minister Colm Imbert”,

“It is this confidence in the economy that (attracts) investors. They use S&P to determine if they want to invest… Within three months (after Imbert took office), Standard and Poor’s went from an A rating to a negative outlook for TT.

“Since then, we have fallen every year from 2015 to June. S&P gave TT a fail rating.

Opposition leader Kamla Persad-Bissessar on Saturday accused Central Bank Governor Dr Alvin Hilaire of mismanagement of the bank.

She said at the launch of the Central Bank’s 2020 Financial Stability Report on Thursday, Hilaire said she was optimistic about the state of the economy.

However, she believes that TT’s current economic situation does not reflect this optimism.

“Given the severity of our economic crisis, one wonders what inspires this ‘optimism’ expressed by the governor of the Central Bank. He clearly does not read how his own reports or wishful thinking have replaced monetary policy based on data to the Central Bank “. she said.

According to the Central Bank’s May 2021 Monetary Policy Report, Persad-Bissessar noted that “domestic economic activity contracted in the fourth quarter of 2020 mainly due to sharp declines in the energy sector and indicators point to continued low activity at the start of 2021 “.

In a tweet on Sunday, Imbert said: “The opposition leader recklessly criticized the Central Bank (CBTT) for being too close to the PNM. The CBTT is responsible for managing interest rates, reserves, money supply, inflation, etc. She does it well. What does she want instead – Devaluation, a UNC Governor or Mayhem? “

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Biden extends student loan hiatus until 2022 – but Democrats still want him to write off $ 50,000 debt entirely Fri, 06 Aug 2021 20:42:00 +0000

JOE Biden has endorsed plans to extend the hiatus on federal student loan payments until 2022 – but Democrats say the measure “doesn’t go far enough.”

Payments were halted last year after Congress passed the CARES law and were due to restart in September – but that has now been pushed back to January 31.


Joe Biden extended the break on student loan paymentsCredit: Yuri Gripas – Pool via CNP / MEGA

Biden’s administration, however, called it a “final extension.”

Those who have borrowed money do not need to make payments during this period and interest will not be added to the remaining balance.

“The payment break has been a lifeline that has allowed millions of Americans to focus on their families, health and finances instead of student loans during the national emergency,” the secretary said. ‘Education, Miguel Cardona, in a statement.

“As our country’s economy continues to recover from a deep hole, this latest extension will give students and borrowers the time they need to plan for the restart and ensure a smooth return to repayment.”

But some Democrats, this is not enough, as they have called on the president to write off $ 50,000 in student debt per borrower through an executive order.

“While this temporary relief is welcome, it does not go far enough,” Senate Majority Leader Charles Schumer, Senator Elizabeth Warren and Representative Ayanna Pressley said in a statement.

“Our broken student loan system continues to exacerbate racial wealth gaps and dampen our entire economy.”

The extension was criticized by Republicans, with Rep. Virginia Foxx calling it “irresponsible delay.”

“Its extension does a disservice to borrowers across the country, and our children will pay the ultimate price for this irresponsible delay,” she said.

“Secretary Cardona is using the continuing narrative of the pandemic to wield power rather than adopt responsible solutions to help borrowers get back on track. I regret that Secretary Cardona has not shown a real leadership in working with Congress to responsibly deliver the portfolio for repayment by October 1 of this year.

“It is nothing less than a dereliction of duty.”

It comes after the Education Department wrote off about $ 56 million in student debt to some 1,800 borrowers last month.

About $ 1.5 billion in student loan debt was written off in total by the Biden administration.

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Former minister tells how IMF borrowed money from Nigeria in 1974 Fri, 06 Aug 2021 11:45:14 +0000

Alhaji Abubakar Alhaji, Minister of Finance of the Second Republic, revealed how the International Monetary Fund (IMF) borrowed money from Nigeria in 1974.

Speaking when former Kaduna Senator Shehu Sani paid him a private visit to his home in Sokoto, northwest Nigeria, Alhaji said he signed the loan agreement when he was permanent secretary of the Federal Ministry of Finance.

Although the former finance minister did not disclose the amount involved, Vanguard quoted it:

“I mourn Nigeria for what it has become today. The country has vast resources which, if properly harnessed, could take the country to greater heights.

In 1974, when I was permanent secretary in the Federal Ministry of Finance, the IMF approached us for a loan. I signed the agreement on behalf of Nigeria. Unfortunately, today government spending plunged us into recession. ”

He added that Nigeria’s excessive dependence on oil was a result of the economic problems the country was plunged into. “Besides oil and agriculture, Nigeria had industries that earned it foreign exchange. Agriculture and industries were allowed to retreat and when global fuel prices collapsed, we are nowhere today. “

The former minister noted that 36 states were too difficult for Nigeria to run and each of them had become breeding grounds for corruption.

“The more states we have, the more corruption there is. We should have between six and twelve states. We should cut our coat according to our size, ”he said.