"Student debt forgiveness punishes ordinary Americans and cash-strapped graduates by letting greedy universities off the hook"
My Latest Telegraph Article
Article Link - https://www.telegraph.co.uk/us/comment/2024/04/30/student-occupation-us-loan-debt-deadline-joe-biden-amnesty/
Joe Biden is once again using student loan forgiveness as a ploy to get votes but he’s ignoring the biggest problem: the colleges. Wiping the debt and not addressing the college’s ability to gauge students will just ensure that this problem will continue to get worse.
It was Obama's response to the crash that have caused college costs (therefore debt) to soar. Sallie Mae and Fannie Mae were restructured to be more privatized and beholden to big banks. As soon as colleges found out that loans would be processed through banks instead of through the Fed Gov't (where costs were regulated), they realized that they could raise prices....and indeed they did! Banks profit from the loans/interest and Higher Education profits by being able to charge what they want. Cancelling student debt without fixing the existing infrastructure (banks, colleges) will just keep this cycle going generation after generation. I have kids in college and it is EXPENSIVE, but I don't want debt cancelled....I want real fixes implemented on the banks and colleges. No one seems to be talking about the real issue!
Excellent points Adam. The problem is "higher education" knows no bounds because the government continues to finance it through student loans. Biden and indeed the entire federal government can be the adult here and not continue to guarantee the bloated education complex it's money. While that doesn't represent direct control it does represent adult decision making and responsible use of the taxpayer dollar. As Dave Ramsey says about a college education, "You're there to get an education, not a pedigree." Pick a school you can afford or at least one where you're not taking on $50-$75k in loans annually. If federal money is not guaranteed in the form of a bailout then students will seek other alternatives, such as less expensive schools or reasonable loans that they can indeed manage.
The result will be that colleges will be cut off from the federal teat and perhaps be forced to be run and managed like any other business. Corporate welfare is as disgusting when it goes to colleges as it is when it goes to bail out GM or Chrysler or Ford. Thanks for highlighting a large economic issue, one of basic fairness to working taxpayers as well as highlighting the usual crass behavior of democrats, who are essentially buying votes.