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Of course it wouldnt be "stimulative" and nor is it anywhere near a serious plan. Just because the students wouldnt be the ones paying the debt doesnt mean someone else isnt...meaning the tax payer would be, you cant just make debt vanish and not have an impact. Just more ridiculous wealth shifting propaganda.
Yes, the students go to college to become richer than everyone else and they also expect everyone else should have to pay their way. Of course they should repay their loans.
I can understand why this would seem reasonable...I saw an expose' on 60 minutes last year about just this...
Alot of people went to those private colleges (University of Phoenix being one) and amassed thousands of dollars in student loans only to find that their training was deficiant and their degree was practically worthless. These former students can't get a job in their fields, they have all this student loan debt and because of this it goes on their credit report and that can makes them unemployable in the public sector...it is a serious downward spiral.
Plus, if you are in default on a student loan you are ineligible to be hired by the government. Maybe it's just me but this seems to be backward thinking..if someone has the skills and training in a field employed by the government say, in nursing or engineering...then I would think it would be wise to hire that person. Then, set up a re-payment program as a condition of employment. The person in default has an income and the opportunity to shore up their skills plus, bring their credit score back up and the government gets their money. Of course the re-payment would come after taxes.
Plus, if you are in default on a student loan you are ineligible to be hired by the government. Maybe it's just me but this seems to be backward thinking..if someone has the skills and training in a field employed by the government say, in nursing or engineering...then I would think it would be wise to hire that person. Then, set up a re-payment program as a condition of employment. The person in default has an income and the opportunity to shore up their skills plus, bring their credit score back up and the government gets their money.
That would be like hiring someone who tried to steal from your company.
That would be like hiring someone who tried to steal from your company.
This is true. You borrow from the government, then pay it back so someone else can borrow too, etc. If we fogive the debt, government loans are a thing of the past. That may or may not be a bad thing since if few people went to college then the bloat would be cut and the prices will fall. We operate under the impression that everyone should go to college and I don't agree. But I'm not sure the deciding factor should be money.
It would have a stimulative effect for sure, those students would likely be able to purchase homes, and start families sooner which would have a positive effect on the economy. However, is it worth $900,000,000,000...that is the bigger question. I would add a moral hazard argument, but after the bank bailouts that is pretty much dead.
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