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Forgiving student loans would take a mountain of debt off of young Americans. However, it would not solve the problem of college costs. Neither would free college solve that. Colleges would still keeping raising tuition because the taxpayers would be covering it.
Those who took loans they could not afford would largely not learn their lesson. They would believe the government will bail them out whenever they had a need so many would replace their student loans with car and home loans that they cant afford. It would likely lead to more bailouts as politicians pander to them for votes.
Forgiving student loans does not solve the economic problem of supply and demand. Neither does having taxpayers cover tuition. The truth is that we are bringing in lots immigrants to work jobs that require advanced education. Our youth should be taking almost all of those jobs but aren't because many are picking majors that have no real vocational relevance. All I see on the left is support for free college for the educational value of having liberal arts degrees but no proposals to condition any taxpayer supported education on obtaining a degree in something useful to society and the economy.
In the Democrat world, taxpayer funded tuition opens college up to more people. It does nothing to solve the dropout rates. Should a dropout be required to pay tuition to reimburse the taxpayers? Democrats want to give handouts to buy votes but they have no solutions to the problems.
Forgiving student loans would take a mountain of debt off of young Americans.
Not necessarily. The average debt is around $32,000 which is nothing more than a car loan.
Except Christen used her student loan to buy herself a car. And to buy a car for her lover (instead of buying one for her husband):
Christen currently has well over $225,000 in student loans. (Id. at 51); (Ex. 3-1 to 3-3). Christen estimated that $128,453 in student loans were directly attributable to living expenses
Christen used student loan money to purchase at least two vehicles—one of which was titled in her boyfriend's name. (Tr. at 64, 206) Christen's bank statements also evidenced financial irresponsibility. Christen spent much of her student loan money purchasing coffee from high-end coffee shops like Starbucks, Caribou, and Cup O'Joe; products and clothes from retailers; I-tunes; tanning sessions/products and massages; arts and crafts; OSU athletic tickets; and other food and entertainment. (2006 Chase Bank & Credit Card Statements, P's Ex. 7). Christen also made several ATM withdrawals for several hundred dollars at a time; it is unclear where this money was spent. (Id.). After reviewing all of the financial records, it is clear that Christen was spending more than the typical student on miscellaneous items and services, often incurring late fees for failing to keep up with her credit card bills. All of these expenses were in addition to the high living expenses that Christen incurred by choosing to live in Dublin, Ohio, an affluent suburb of Columbus.
[emphasis in original court decision]
Quote:
Originally Posted by King_Henry
However, it would not solve the problem of college costs.
That much is true. One thing that would solve the problem of college costs would be limiting student loans to only those students who score 2100 or higher on the SAT or 27 or higher on the SAT.
By limiting student loans to only the smartest students, colleges would be forced to cancel all remedial classes and terminate the employment of instructors who are usually adjunct professors or "street people" who teach remedial courses.
I mean, really, if you're in college, you should not need remedial English, math and science.
Quote:
Originally Posted by King_Henry
Neither would free college solve that. Colleges would still keeping raising tuition because the taxpayers would be covering it.
No country on Earth has "free college."
That is a Göbbelization.
A truthful statement is that many countries offer free college to the cream of the cream of the crop, meaning the most intelligent students based on continually scoring in top 10% on tests and exams.
Forgiving a $250,000 loan is silly and would provide no value. Forgiving $10,000 loans would simply be a stimulus program like the others that have been passed. It's limited in scope and more controlled than handing out checks to people and corporations. It also doesn't wipe out loans for people who abused the system.
If we really want to solve the problem, we would remove the government from the revenue stream of universities. All they do is jack up the costs with a bunch of costly overhead.
I started college in 1986, lived at home, and it was $60 per credit hour. I took 16 hours, which totaled $960 at a second tier 4 year institution. In 4.5 years, I graduated with $5000 of student loan debt from my credit union in 1990. No government involvement.
It doesn't solve any problem.
It is intended to attract voters, nothing more. As people leave college and go to work they leave the Democratic party. This is an attempt to keep them.
If we really want to solve the problem, we would remove the government from the revenue stream of universities. All they do is jack up the costs with a bunch of costly overhead.
I started college in 1986, lived at home, and it was $60 per credit hour. I took 16 hours, which totaled $960 at a second tier 4 year institution. In 4.5 years, I graduated with $5000 of student loan debt from my credit union in 1990. No government involvement.
This.
Get the government out of the student loan business and watch tuitions drop like a rock.
When I was selling my house a few years ago I had three young couples who wanted to buy but the banks would not give them a loan due to their student loans. They are stuck paying rent in some dingy apartment or are living with parents. There are likely millions of similar situations where the couple has a combined debt that is holding them back, especially if they graduated during the great recession or some other recession and struggled to find work. Who really benefits from the student loan mess?
Forgiving loans is a band-aid solution that will help families and the economy but it has to go with a revamping of the higher education system. Free community college would be one way to shake things up. Then add some kind of tuition/cost control on public universities. Nobody "needs" to go to Middlebury or Yale. We might need to figure out how to manage the cost for medical school or other graduate professional programs.
Taking such a burden off young americans is good enough. High tuition costs is another issue separate from young americans being straddled with debt.
Burden off the student who is indoctrinated with liberal political agenda.
Burden put on adult taxpayers - many who despise the liberal political agenda being pushed onto kids with no life experience.
The burden is just being shifted around - it doesn't go away.
Take the government out of the equation, and what would result is the burden of payment for one's education would be put on the consumer - like it is with most of normal life. And prices would be much lower.
When colleges understand that government is main the purchaser (through student loans) - they will jack up prices because the main customer has deep pockets to pay the inflated prices. Take the government out - colleges would be forced to lower prices to normal consumers who don't have deep pockets if they want to stay in business.
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