Whether it is $50,000 or all student loans under blanket forgiveness, it’s wrong.
And it certainly is not fair to many taxpayers.
The notion that forgiving these loans is necessary to allow college graduates to buy a house, start a business or in any way improve their economic status is an insult to hard working Americans who never went to college. It’s an insult to graduates who diligently paid their loans.
A loan is a loan and intended to be repaid, especially a loan invested in education providing a lifelong benefit and advantage over others. Especially a loan entered into with full knowledge of the obligation being created.
Wouldn’t it be better instead to spend the $1.6 trillion or even $1 trillion on targeted programs to help those most in need? And to help them permanently move ahead economically.
What about the loans being created by current students, by those entering college in the future? Why should any student be prudent in obtaining loans with the expectation they are not a real obligation?
See excerpts from a NY Times article – 3/25/2010 (below)
The federal government takeover of student loans was part of the Health Reform package. Folks forget there were two bills – the Patient Protection and Affordable Care Act of 2010 AND the Health Care and Education Reconciliation Act of 2010.
The federal takeover of student loans was supposed to “earn” $60+B for taxpayers over the 10 year budget window (part of the “revenue” to pay for Health Reform – so President Obama could assert that Health Reform wouldn’t add one thin dime to the deficit). https://www.cbsnews.com/news/transcript-obamas-health-care-speech/
However, the changes essentially smoothed the way for colleges and universities to dramatically increase the cost of a college education (Purdue excepted), because there were taxpayer-subsidized loans available to finance it. And, given all of the defaults, and more recently the suspensions without interest since the pandemic began, federal student loans have been a significant contributor to current deficit spending. This was one of many Health Reform provisions that didn’t work out as planned … provisions that either never took effect or were revised by later Congressional actions – all of which resulted in a failure to fund the expansion of taxpayer subsidized health coverage through the public exchanges and Medicaid. Examples include CLASS, the individual mandate, the Cadillac Tax, etc.
This is also a great example of why TAXPAYERS should NEVER trust CBO projections!
Click to access 03-15-student_loan_letter.pdf
And, it is a perfect example of the great lies told by President Biden and other D’s regarding Build Back Better and its scoring. I plan to send a contribution to Joe Manchin’s reelection campaign in 2023, after the 2022 mid-term elections and a new Congress is sworn in, conditioned only on Congress’ continued failure to pass Build Back Better. .
From the NY Times …
Student Loan Overhaul Approved by Congress
By David M. Herszenhorn and Tamar Lewin
March 25, 2010
WASHINGTON — Ending one of the fiercest lobbying fights in Washington, Congress voted Thursday to force commercial banks out of the federal student loan market, cutting off billions of dollars in profits in a sweeping restructuring of financial-aid programs and redirecting most of the money to new education initiatives. …
The revamping of student-loan programs was included in — if overshadowed by — the final health care package. …
Democrats celebrated the legislation, a centerpiece of President Obama’s education agenda, as a far-reaching overhaul of federal financial aid, providing a huge infusion of money to the Pell grant program and offering new help to lower-income graduates in getting out from under crushing student debt. Still, the final bill is less ambitious than the original proposal. …
“The Democratic majority decided, well look, while we’re at it, let’s have another Washington takeover,” said Senator Lamar Alexander, Republican of Tennessee and a former federal education secretary. “Let’s take over the federal student loan program.” …
The Congressional Budget Office said the direct-lending approach would save taxpayers about $61 billion over 10 years. …
The legislation will make it easier to pay back student loans, by reducing the share of income that a graduate must devote to loan payments and by accelerating loan forgiveness — but not right away. Those who take out new loans after July 1, 2014, will have to devote 10 percent of their income to payments, down from the current 15 percent, and those who keep up their payments will have their loans forgiven after 20 years, reduced from the current 25. …
“Income-based repayment is a fantastic addition to the Senate bill that will allow over a million students to avoid being crushed by unmanageable levels of debt,” said Rich Williams, a higher-education advocate at the U.S. Public Interest Research Group.
Providing funds to a targeted audience of folks in greatest need means a smaller number of registered voters receive anything, which I think explains why the funds are spread over a larger number of people.
Richard, I agree with your primary statement that forgiveness of student loans is a misappropriation of funds. No doubt! However, to say that those funds could be spent in better places is a farce!!! What funds are you talking about? Oh yeah, the “funny money” funding with dollars that don’t exist. If we were a country of balanced budgets and no debt, running annualized surpluses, perhaps we could initiate additional programs to assist those in need, though the results of these types of programs has developed a dependency class, Until then, aren’t you promoting just another form of misappropriating funds?
The fact that politicians want to forgive college loans is proving some big lies are true. If college graduates, earn a million dollars more than non-graduates, then they can afford to pay their loans back. Not everybody must go to college, there is no shame in turning a wrench for a living, just ask Mike Rowe Works foundation. I also question the quality of a current college education today, so as not to get too political here across many, many subjects so I’ll leave it at that.
No, I can’t leave it at that. How is 2+2=4 racist? This is what one college professor is teaching.