Well said.
I would add that each distortion requires another distortion to remedy the initial distortion. In other words, socialism only begets more socialism, never actual reform.
Posted on 06/03/2022 4:06:19 AM PDT by karpov
From the earliest days of his administration, President Biden has been under pressure from activist groups and many fellow Democrats to take action to relieve students of their college loan debts. For example, a coalition of 105 organizations urged him to unilaterally cancel most or all of the more than $1.6 trillion that students owe. Doing so, they claim, would enable borrowers to start generating wealth, saving for retirement, and beginning families.
Can the president simply declare that debts owed to the government under these loan contracts are forgiven? If so, will it have the beneficial consequences envisioned by advocates? And what if any disadvantages would such a move have?
In a recent study done for the Texas Public Policy Foundation, Andrew Gillen meticulously analyzed the arguments pro and con. A particularly appealing aspect of Gillen’s approach is that he avoids the tendency to set up “strawman” versions of the arguments for loan forgiveness—that is, asserting weak versions of those arguments that are easily knocked down. Instead, Gillen insists on doing the opposite. He “steelmans” the case for loan forgiveness, which is to say that he deals with the strongest versions of the case by citing its best advocates.
Let’s begin with the legality of the proposed cancellation. That ought to be the first question posed, since there’s no point in discussing the matter further if the president lacks the power to do it.
The claim that the president does have this authority is grounded in the Higher Education Act of 1965, which provides that the Secretary of Education (and thus, presumably, his superior, the president) may “modify, compromise, waive, or release any right … including any equity or right of redemption.”
(Excerpt) Read more at jamesgmartin.center ...
And that's what adults do...work and pay for things.
Is my refund from 1983 going to be adjusted for inflation?
He didn’t mention those of us who are paying for our kids to go to college. Will we get money back from the government?
There is also the problem of future funding since the classes of 2028 and 2058 will consequently be expecting free tuition and living expenses.
Why should Hispanic construction people have to pay for pickup trucks and tools when white college students don’t have to pay for what they need to earn a living?
The true solution is eliminating federal student aid programs. Universities lobbied for these programs, have taken on enormous debt to finance country club like facilities to compete against each other for students.
Eliminating federal student aid programs will bankrupt the majority of Universities.
The government has distorted the dickens out of every major segment of the economy.
In essence, “they broke it,” being the free market. The chickens will come home to roost, the public will be screwed, and the aristocrat class and its puppet politicians will walk away wealthy.
Eliminate federal student loan programs and force these Universities to burn down their MASSIVE Endowments. No reason these Universities need multiple 100’s of Millions of dollars in the bank and then turn around and DEMAND federal student loans.
I suggest LOWERING TUITION and FIRING 50% of their Bloated Administrative staff would be a good start.
If they want to forgive loans then claw every dollar back from the colleges and universities that received the tuition money.
If the kids think this will be a free ride, wait until they receive the 1099-C for the forgiveness of their debt. The full amount of taxes will be due April 15 next year. How much are the income, SS and Medicare taxes due on $100,000?
I paid of my damn loan. Where is my refund?
>>>He didn’t mention those of us who are paying for our kids to go to college.<<<
Those people don’t count. My grandson is the only one in my family going to college, and PAYING AS HE GOES. My daughter and SIL have had to get a second mortgage on their house to help pay. So basically - responsible bill-paying Americans DON’T COUNT to this a-hole “president.”
“President Biden has been under pressure from activist groups and many fellow Democrats to take action to relieve students of their college loan debts”
Gee Joe, I went out and bought a $60,000 Tesla to help save the planet and can no longer pay for it when I only make $60,000 a year so how about some loan forgiveness?
It’s not canceling debt. It is transferring debt to people who did not incur the debt - you, me, the taxpayers. I have no desire for paying for ‘studies’ degrees that lead to careers at McDonalds. Screw the misguided leftists that can’t be productive in the world. It’s an expensive lesson that probably won’t sink in, but I don’t have to pay for it.
There is no debate. It should not happen. Ever.
But if it does, this is one where I fully intend to redeem my equitable share.
If there is a debate it should be mindful of the penalties for being political.
Make the colleges refund the tuitions.
Well said.
I would add that each distortion requires another distortion to remedy the initial distortion. In other words, socialism only begets more socialism, never actual reform.
The only solution I can see that might be acceptable is to cancel interest on the loans. Pay back the principle, which is what went for the education, in full. It seems to be the rapidly accumulating interest that is the primary problem to begin with.
“I want you to pay off my loans”
“No”
end debate
The political deal is to forgive some debt of debtors who can’t possibly repay it, in exchange for ending the Dept. of Education which caused the problem. Understand that this money has already been spent by the U.S. government, and much of it is not recoverable. The Bidet Regime’s idiotic $10,000 in forgiveness for everyone, regardless of need solves nothing. It would forgive debt for people who benefited from their education while failing to actually help people who can’t repay. If a person didn’t finish a degree and owes $100,000, forgiving $10,000 doesn’t solve his/her problem.
Other reasonable solutions are to restore student loan debt discharge in bankruptcy and to also restore a limitation on how long the government has to bring suit on a disputed debt, which would also restrict wage garnishment after a set time.
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