Posted on 12/03/2020 9:10:32 AM PST by SeekAndFind
The question of whether the government should cancel the $1.6 trillion in student debt held by 43 million American adults drifted out of the political debate after the strongest advocates for the idea, Sens. Elizabeth Warren and Bernie Sanders, left the race for the presidential nomination.
It's back. That's because President-elect Joe Biden has endorsed canceling at least $10,000 in federally held loans per borrower as a COVID-19 relief measure (Democrats in Congress want to raise the figure to $50,000).
Biden also proposes easing payment terms for most borrowers and taking other steps to cut the financial burden for low-income college students.
"The relative burden of education debt has long been higher for families with lower net worth, and...this disparity has grown much wider in the past couple decades."
Janet Yellen, then-chair of the Federal Reserve, in 2014
Biden's proposal has also revived the arguments against canceling student debt, which tend to revolve around issues of fairness. Accordingly, it's proper to take a look at the pros and cons. Spoiler alert: Canceling student debt will yield huge benefits for individual borrowers and for the economy at large, and the more the better.
In reality, most student debt is destined to be canceled eventually, observes University of Utah economist Marshal Steinbaum, a senior fellow at the Jain Family Institute, a social science research organization.
That's the harvest of the increased popularity of income-driven repayment programs, which cap annual repayments at a percentage of a borrower's income and forgives any balance remaining after a set period — 20 years for undergraduate loans and 25 for graduate or professional study.
"Cancelation is the thing that everyone's waiting for," Steinbaum told me. "So why are we making them wait? Why don't we just recognize that these are bad loans and eat them now?"
(Excerpt) Read more at finance.yahoo.com ...
I guess I’m mistaken in thinking the government issues these loans. Is it just that the government guarantees them?
RE: I never had a loan and I am 60 years old.
Not even a mortgage?
Reparations for people who bet on themselves and lost because they suck? Can we do that for poker too? Or Monopoly, if I land on Park Place with 4 houses I’ll just take money from the bank to pay it.
Never had a loan for education.
A lefty writer quotes lefty sources to come to a conclusion supported by lefties. This is not news.
His main argument: Paying off the debt would be a boon to the economy.
This is true of any kind of debt. By definition.
Why would student debt be special? Why should it be special?
Any discussion of student debt forgiveness should start with the question: Did the students receive a benefit? Yes or no?
The idea was floated to college kids, they demanded it, now they’re being thrown a small tease of the large prize to keep them on the democrat hook for many election cycles.
When this scheme adversely affects banks will we be told again they’re “too big to fail”?
Never ever cancel the debt. Liquidate college assets real property and endowment s to pay the debt..
And then the snowflakes get $10k in forgiven debt...better known ads income. Unless they give everyone a tax credit for the tax liability.
That is the ONLY way it becomes fair.
NO!
I paid for mine, my wife paid for hers, and our kids paid for theirs!
Deadbeat college kids and their deadbeat parents can pay for theirs!
Poor suffering American taxpayers DO NOT WANT TO PAY DEADBEAT COLLEGE STUDENT EXPENSES!
I was thinking, whenever they state something stupid like, “its only fair”, the game should be to add “, comrade” to the sentence.
That will more accurately describe what they actually mean.
What about mortgage debt? Housing is a right!
What about medical debt? Health is a right!
What about credit card debt? Shopping is a right!
Where does this end?
I had this very conversation with my grad school daughter the other day. She was telling me that healthcare was a right.
I asked her if she thought her mother (who works at a hospital) should be paid a salary.
Of course, she said.
I pointed out that the 13th amendment meant that there was not inherent “right” to someone else’s labor. And that is what healthcare is...other people’s labor at school and then every day in practice.
They have no more right to healthcare labor than a black man’s labor in 1865.
They took over the entire system during Obama...i think.
I agree wholeheartedly. They willingly took on this debt. Now they can pay it back! Why should I pay for these people's educations via my taxes?
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