Real Solutions to the College Debt Crisis: There are no "easy, sensible fixes" to the college debt problem and why loan forgiveness won't work

American Thinker ^ | 01/27/2021 | Larry Alton

[SeekAndFind]

Regardless of where you fall on the political spectrum, it’s clear that we’re in the midst of a critical college debt crisis. The average college graduate now enters the workforce with the burden of more than $30,000 in debt, with some outliers leaving with $100,000 or more.

With a 6 percent interest rate (or higher), they’re immediately faced with an ongoing payment requirement that leaves them unable to save, unable to buy a house, and unable to accumulate wealth over time.

Many politicians have proposed what they claim is an easy, sensible fix: semi-universal loan forgiveness, or an immediate repayment program to eliminate college debt among graduates below a certain earning threshold. However, this fix won’t be effective long-term, and will end up causing far more problems than it solves.

Instead, there are better, more practical solutions to find.

Why Loan Forgiveness Won’t Work

Let’s start with a basic overview of why this mode of direct loan forgiveness isn’t going to work:

• Rewarding the fiscally irresponsible. Not everyone who graduates from college graduates with debt. Some people minimize their expenses, work hard, earn scholarships, and attend inexpensive universities so they don’t graduate with debt. Forgiving excessive student loans is a way of rewarding the fiscally irresponsible; not only is this unfair, it also enables fiscally irresponsible parties to find new ways to put themselves in bad situations (such as taking on credit card debt). It doesn’t solve the problem at the root; it treats a symptom of the problem temporarily.
• Ignoring the high cost of tuition. Debt is a problem in part because college tuition is unreasonable. Simply paying off the debt isn’t going to change this; it’s just going to shift the burden of tuition to the government and the taxpayers.
• Punishing taxpayers. This money isn’t free. It’s going to come from taxpayers

[SeekAndFind]

If we’re going to launch a government assistance program, it should be for people who truly need it. Most of the people benefitting from a loan forgiveness program are college graduates with undergraduate or graduate degrees; these people have already gotten an education and are poised to make far more than high school graduates and high school dropouts over the course of their lifetime.

ALSO, The stated benefit of this program is to stimulate the economy, but how exactly would this work? Paying off debt doesn’t encourage someone to start a business, or pursue a better career, or create new jobs and opportunities. It makes them complacent and dependent on the state.

[escapefromboston]

Stop having student loans. Then schools would have to charge a more
Reasonable tuition.

[qam1]

There is an easy sensible fix

Stop making people take “core” courses that have nothing to do with their major.

If a person majors in Chemistry, they should take only chemistry classes. No Black Studies, No TV and Film studies, No economics of Black Jewish Lesbians in the 18th century, and any other crap, just Chemistry.

At any University you could kill 3/4 of the departments and staff and be better off for it.

[MattMusson]

The People who owe the most in Student Loan Money are Doctors, Dentists and Lawyers.

[Starboard]

‘Sensible’ no longer matters in this country.

[ClearCase_guy]

I think the entire thing is a sham and needs no solution.

If you’re 17, consider becoming a plumber. Or go to college. It’s your choice. I know which path I’d pick, but I’m not you. Go live your life. But I don’t need to solve the problems you make for yourself.

[NEMDF]

Yes, let the schools “finance” the costs, give the students a 10-year option. Just like you can now go buy a car, with financing arranged by the dealership, for 3-7 years.

[gcparent]

Relative phd pharmacist. Almost 200k student loans. And they went to in State school for undergrad and masters. Problem is they allow you to borrow for almost any expense.

[FreedomPoster]

Hard-Working Plumber Looking Forward To Paying For His Neighbor’s Gender Studies Degree
https://babylonbee.com/news/hard-working-plumber-looking-forward-to-paying-his-for-his-neighbors-gender-studies-degree

[1Old Pro]

let the schools “finance” the costs

Exactly, and as part of the program they need to attend debt management and finance classes to understand how repayment works.

[HighSierra5]

They will make the the students pay off their debts by “volunteering” for Commierat causes.

[Lurkinanloomin]

Make the universities eat the debt, they created it for worthless degrees.

[PerConPat]

The program dilutes higher education, basically provides a faculty-full-employment program and saps the workforce of technicians. Collect the loan payments while scrapping the program....It has bloated higher education and punished the taxpayers.

[drwoof]

It used to be, in the way-olden Stone Age, that many (most?) students worked at least part time, and tuition at state schools was very reasonable. Loans, then, augmented meager incomes to help young people scrape by. They weren’t there to provide an option to working while going to school. The mania around Spring Break really didn’t exist, and generally we either didn’t have, or drove very crappy, cars. No longer.

[Jan_Sobieski]

“Economics of Black Jewish Lesbians in the 18th century“

Wow! Might be a great class just for future laughs! LOL!!

[Jan_Sobieski]

Universities have no skin in the game

[lurk]

Here’s an idea: don’t get into school debt. Pay cash or don’t go. Work your way through. Go to trade school.

[lurk]

Here’s an idea: don’t get into school debt. Pay cash or don’t go. Work your way through. Go to trade school.

[maddog55]

There are no “easy, sensible fixes” to the college debt problem

Actually there is a simple solution. Pay your F’n bill

Easiest way to not have massive student debt is go to a technical college and learn something vice brainwashing.