Posted on 06/24/2019 5:52:35 PM PDT by E. Pluribus Unum
Senator Bernie Sanders released a bill Monday that would cancel all outstanding student debt. But it does little to stop the student debt problem from arising once again–and may even make it worse. The Sanders bill would cancel all of the roughly $1.5 trillion in student debt for 44 million Americans, including debt owed by wealthy individuals, debt owed to private lenders, and debt owed to the federal government’s loan programs. It would also attempt to make college education at state schools free to students, paid for by a combination of state and federal spending.
By Senator Sanders’ estimate, the bill would cost approximately $2.2 trillion. But the cost could eventually be much higher because the bill largely leaves in place the current system of federal student lending, which means the next generation of college students could once again build up unsustainable levels of debt.
And that, in turn, will invite another round of debt forgiveness.
Sanders plan does not actually cancel college debt. It shifts the burden from former students to taxpayers. And going forward, far from canceling student debt, it lets current and future students continue to rack up debt–but now with the expectation that those loans will not have to be repaid because another round of forgiveness is likely in the offing. It does nothing to force colleges to hold down the cost of education to levels that students can be expected to repay in the future.
This moral hazard risk is a standard part of the economic analysis of debt relief. The very economists whose work appears to be behind Sanders’ plan explained in a paper that “debt relief today could change the incentives of future student debtors who may increase borrowing with the expectation that the loans will be forgiven...
(Excerpt) Read more at breitbart.com ...
Every person in America will be a millionaire. Like they were in pre-WWII Germany and present day Venezuela. Yay!
Why would anyone think Bernie knows anything about finances, business, economics, or pretty much anything other than Marxism? What has he done in his life that gives him experience-based wisdom? He is an ideologue without a clue.
Bernie really is that stupid !!
As with Reparations, and all the rest of it...I simply will stop paying taxes.
Let’s just cancel the national debt. Makes more sense.
If this were to become law folks who try to save for college ahead of time, work while in school and make the effort to obtain scholarships WOULD NOW BE FOOLISH. Hell, everybody would depend upon “loans” to pay all their expenses since they would expect them to be written off.
In other words the 2/3 of the population without a college degree will be compelled to subsidize the dim bulbs who willingly borrowed money they had no intention of repaying. Nobody forced them to take on that debt.
Sanders is an idiot.
The old soviet Bernster’s wife was able to drive tuition at Burlington College to Zer0 in just a couple of years.
A pair of real financial genuses they are.
Yeah, he's a demoRAT, all right. And I sure hope all those wrinkled, cankled, used up demoRAT voters are paying attention.
I paid off my student loan.
Brought to its logical conclusion, everyone will want their money back.
Reparations are a helluva drug.
Canceling all student loans is equivalent to nationalizing all universities... and you know how commis love to take private property. Their real objective is to get their grubby hands in university endowments. Just like they would our private retirement accounts.
Yes; let’s make college free for everyone!
And let’s do it by taking all the endowments!
Noting is as expensive as something that is “free.” You think college tuition has increased disproportionately to other costs? Just wait until the various institutions of “higher learning” figure out they can charge even more and the government will subsidize it... Costs will explode - probably even worse than what obamacare did for healthcare costs.
I think President Trump NEEDS to come up with a real innovative and savvy way to address the College Loan Debt Crisis! I have 2 kids who have Masters Loans Debts (we helped them pay off their Undergrad Debt) and it does beat them down about how long it will be based on their loan to income ratio to pay those $$ off.
Trump could in effect gain the Millenials IF he can logistically come up with a DEAL to help them...IT IS THE CRISIS right behind our BORDER CRISIS that needs to be addressed and given a solid solution UNLIKE the democrats.
Comrade Bernie is really getting desperate before the debates.
His healthcare proposal needs to be framed as a vehicle for completely destroying Medicare.
Repeat often.
Is Sanders planning to reimburse the people who paid their college loan debts?
College loan reparations
Listening to all these yahoo’s, I can’t help wondering: Isn’t bribery against the law any more?
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