Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

Let’s Cancel Student Loans – Not Forgive Them, But Cancel the Program
American Institute for Economic Research ^ | May 20, 2022 | George Leef

Posted on 05/20/2022 11:11:51 AM PDT by karpov

In recent weeks, the tumult in Washington has largely centered on the issue of student loans. Almost every Democrat and left-leaning pundit has come out in favor of some degree of relief for those who have amassed debts to pay for college. Rep. Ro Khanna (D-CA) for example, penned a Washington Post opinion piece with the exhortative title, “President Biden, it’s time to cancel student debt.”

What he wants the President to do is to forgive students of their payment obligations under their federal student loan contracts. It’s highly questionable whether the President has the legal authority to unilaterally forgive student debts, but let’s put aside that problem.

I’m going to argue that Congress should do something it unquestionably has the power to do, namely to repeal a statute. The statute is the Higher Education Act (HEA) of 1965, one of the many laws passed by a giddy Congress at the behest of President Lyndon Johnson. Johnson had a host of ideas for improving America through federal money and regulation—his “Great Society”—and government meddling in education was at the top of his list. Title IV of the Act created the federal student loan program.

The first question that ought to have been raised is whether the HEA was constitutional. Nothing in the Constitution authorizes Congress to legislate with respect to education. Article I, Section 8 sets forth the powers of Congress and education is not included. Education was among the great number of subjects that the Founders thought belonged to “the States or the people respectively” as the Tenth Amendment reads.

Nor does the Constitution anywhere authorize Congress (or the President) to lend money to college students—or to any other group.

(Excerpt) Read more at aier.org ...


TOPICS: Constitution/Conservatism; Culture/Society; Editorial
KEYWORDS: college; studentloans
Navigation: use the links below to view more comments.
first 1-2021-29 next last

1 posted on 05/20/2022 11:11:51 AM PDT by karpov
[ Post Reply | Private Reply | View Replies]

To: karpov

There needs to be a correction to run away college costs. They are turning out way too many graduates with useless degrees.


2 posted on 05/20/2022 11:14:28 AM PDT by The_Media_never_lie (Brandon's got this.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: karpov
Colleges should be helping students finance their education, just like car dealerships help finance somebody buying a new car by getting them loans.

I bet tuition comes way down too, if the colleges end up being on the hook for the student not paying back the loans.

3 posted on 05/20/2022 11:14:36 AM PDT by SamAdams76 (2,973,528 active users on Truth Social)
[ Post Reply | Private Reply | To 1 | View Replies]

To: karpov

If there is to be any forgiveness or relief to former college students weighed down by loan debt it should NOT come from tax payers but by the colleges that exploited the loan program by overcharging.


4 posted on 05/20/2022 11:20:56 AM PDT by AndyTheBear
[ Post Reply | Private Reply | To 1 | View Replies]

To: karpov

Why the heck is the gov in the college tuition business anyway?
Oh yeah, to let the PRCs steal all our intellectual property!
To groom young adults into communism!
To groom young adults into gender dysphoria if K-12 hasn’t gotten THEY yet!
To teach young snowflake whites that they are the foundation of evil, IF WHITE!

Did I leave anything out?


5 posted on 05/20/2022 11:22:58 AM PDT by Harpotoo (Being a socialist is a lot easier than having to WORK like the rest of US:-))
[ Post Reply | Private Reply | To 1 | View Replies]

To: SamAdams76

Ok

Can everyone please look at this please

Obama took over college loans in 2009

Now it’s “federal student loan” racket

Tuition goes up the way military industry corps went way up. Famously in the 1990s wrenches and toilet seat covers were hundreds

Now tuition is growing exponentially higher than the rate of inflation

The 17 year olds signing those motes are going along with the program

People blame them

That’s stupid

They’re not going to not go to school just because Obama turned their deans and profs into willing participants in a money laundering operation that makes the 40 b Ukr money laundering operation look like a mom and pop shop. It’s billions

Parents allowed this

Deans are making 3-5 million per year

The S loan industry is so overinflated they don’t ever expect to recover that borrowed money

But debt does not go away. We pay

But stop blaming the kids

They’ve been taken advantage of by Obama and co.


6 posted on 05/20/2022 11:24:22 AM PDT by stanne
[ Post Reply | Private Reply | To 3 | View Replies]

To: karpov

Yes, the government has no business subsidizing “private” colleges by guaranteeing loans. All they are doing is driving tuitions up, encouraging people to take on more debt, and reducing the quality control of the institutions.


7 posted on 05/20/2022 11:30:34 AM PDT by Boogieman
[ Post Reply | Private Reply | To 1 | View Replies]

To: karpov

Let’s take the loans out of the hands of the government and back into the hands of our banking system. That’s where the problem lies. The government has no business in being in the student loan business.


8 posted on 05/20/2022 11:33:18 AM PDT by Sacajaweau ( )
[ Post Reply | Private Reply | To 1 | View Replies]

To: karpov

I’m OK with forgiving student loans, as long as it’s the colleges that pay. As long as that’s part of cancelling the program.


9 posted on 05/20/2022 11:33:34 AM PDT by Salman (It's not a "slippery slope" if it was part of the program all along. )
[ Post Reply | Private Reply | To 1 | View Replies]

To: karpov

Schools are sitting on billions. They can afford to finance their students


10 posted on 05/20/2022 11:36:51 AM PDT by cableguymn
[ Post Reply | Private Reply | To 1 | View Replies]

To: Taxman

Ping


11 posted on 05/20/2022 11:37:24 AM PDT by Taxman (SAVE AMERICA!)
[ Post Reply | Private Reply | To 1 | View Replies]

To: SamAdams76

Super advanced basket weaving phd will no longer be offered


12 posted on 05/20/2022 11:37:43 AM PDT by cableguymn
[ Post Reply | Private Reply | To 3 | View Replies]

To: cableguymn

The schools don’t even have to “finance” them, in the standard sense of the word. No money has to change hands, because the school is just accepting delayed payment for services.

Make the schools provide “buy now, pay later” terms for students. The schools will have to evaluate the students’ ability to repay, based on the students’ credit and their anticipated earnings from the education they will get. And students MUST be allowed to wipe out school debts through bankruptcy (they can’t presently). This will give the schools some skin in the game.

This will mean goodbye to a lot of programs whose names end in “studies”.

Of course, a student could raise his own (private) financing or pay in cash.


13 posted on 05/20/2022 11:58:35 AM PDT by motor_racer (Who will bell the cat?)
[ Post Reply | Private Reply | To 10 | View Replies]

To: Salman

The colleges have already been paid, hence the need for the loan.


14 posted on 05/20/2022 12:28:51 PM PDT by DownInFlames (P)
[ Post Reply | Private Reply | To 9 | View Replies]

To: karpov

If you got rid of guaranteed student loans, you would see college prices fall immediately...

Every single school knows that ever single student has the ability to get $XXX of dollars in loans no matter what... this creates an artificial floor.... why would any college ever charge less than $XXX?


15 posted on 05/20/2022 12:30:27 PM PDT by HamiltonJay
[ Post Reply | Private Reply | To 1 | View Replies]

To: karpov

NO, move to private sector is the answer.


16 posted on 05/20/2022 12:32:56 PM PDT by oil_dude
[ Post Reply | Private Reply | To 1 | View Replies]

To: stanne

“But stop blaming the kids.”

All the other grifters that you identified and run the racket aside ... do you mean “the kids” have no responsibility (0%) here?


17 posted on 05/20/2022 12:50:45 PM PDT by Susquehanna Patriot
[ Post Reply | Private Reply | To 6 | View Replies]

To: karpov

Nothing but a ponzi scheme to enrich universities and banks!!!!


18 posted on 05/20/2022 12:58:38 PM PDT by ontap
[ Post Reply | Private Reply | To 1 | View Replies]

To: AndyTheBear

exactly!!!!


19 posted on 05/20/2022 12:59:10 PM PDT by ontap
[ Post Reply | Private Reply | To 4 | View Replies]

To: Salman

“As long as that’s part of cancelling the program.”

As long as that’s the only way to cancel the debt.

Yes, we’ll do a leftist here. The “rich colleges” (millions to billions in endowments) will help the “less fortunate” colleges and be taxed so that less fortunate schools can then cancel the debt of their “poor students”. And the rich schools will also be required to cancel a certain percentage of the debt of their own students, whether they graduabated or not. The students for debt relief will chosen by lottery. And if they had paid off their loan, they get to enter the lottery because it is only fair. Then ... all classes will be published on line and open to the public without any qualification (testing, application, etc) to attend at no cost. All the person has to do is identify for educational asylum - no questions asked. Running this thing like our progressive tax system and southern border is something the leftists will jump on, ... right?


20 posted on 05/20/2022 1:05:35 PM PDT by Susquehanna Patriot
[ Post Reply | Private Reply | To 9 | View Replies]


Navigation: use the links below to view more comments.
first 1-2021-29 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson