Posted on 01/27/2021 6:37:50 AM PST by 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:
(Excerpt) Read more at americanthinker.com ...
Stop coddling the children and make them honor the contracts they sign, they make the loan, they pay the loan...simple.
This is how UK universities work—no electives, and graduation in 3 years instead of 4. Much cheaper.
IMHO, as long as Democrats think that “offering free stuff” will get Democrats elected, NOTHING constructive will be done by the current “majority” party. NOTHING.
But I believe that if colleges had to absorb a portion of the losses on student loans that those colleges approved, then loan underwriting and administration would improve.
I hope that Republicans will be serious about fixing this “problem” (and other problems) when they become the majority party again.
I used to insist on a college education. Not so much these days. Unless someone is going into law or medicine, they’re better off learning a workable skill.
How about this.
Make colleges refund 1/2 the tuition if someone graduates and does not find a position that is appreciably better than no degree?
Around 20 years ago I “loaned” about a quarter of a million dollars together to my two children. Now I want it repaid.
ML/NJ
Here’s a thought for the youngsters. PAY YOUR OWN DAMNED DEBTS!!!!
Sure there is an easy sensible fix. Let those who took the loans repay them.
The FIX is to get the government OUT of the student loan business, and let private-sector banks handle loans.
The only fix for this ‘issue’ is to simply put the schools themselves on the hook for the debt. Nothing else is going to work, because it doesn’t put pricing pressure where it belongs.
That’s a good idea and would incentivize colleges to making sure their students get actual real jobs to pay back their bills. Though it might be an issue with smaller schools with less endowments
The feds created this problem by:
(1) Allowing higher ed to operate as a cartel by giving accreditors immunity from antitrust laws while making them the gatekeepers for federal aid. This is why there is no real competition and innovation in the industry.
(2) Pouring money into higher ed indiscriminately starting in the 80s and allowing the money to be used for practically anything even if it has nothing to do with education. University budgets have consequently exploded with most of the increase going into things which have no long term benefit to students.
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