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 ...
IF those currently holding student debt get such a reduction-—then WHERE ARE MY REPARATIONS for paying MY OWN WAY for all the college courses I took?
I paid for my classes, books, and other necessary materials.
Got no financial assistance from anyone at anytime.
I was paying for my first house (P I T I) and also going to school taking accounting courses.
I never missed a house payment & I paid for all my classes, books, and materials I needed myself. Had NO financial help from anyone.
My hourly wage at the time was UNDER $7 an hour.
Someone needs to tell the Burn if he wants money to pay off student’s loans they should go to the colleges and ask for refunds.
college kids, if they have any ability at all, will find good paying jobs, so why do we need to subsidize them and not the guy changing your tires or driving a tank?
EVERYBODY GETS AN APOLOGY!
Do we get reparations because we actually paid off our college loans?
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