Never thinking about the future …

that’s how politicians don’t think- short term non-solutions- longer term larger problems. Why shouldn’t new students this year maximize their loans? Future repayments will be lower and why not anticipate another round of loan forgiveness in the future? What fair is fair, right?

How Long Will It Take for Cancelled Debt to Return to Current Levels?

We estimate that cancellation will eliminate $550 billion of federal student loan debt. However, we project that the overall amount of outstanding federal student loan debt will return to $1.6 trillion (its current level) within five years. 

Committee for a Responsible Federal Budget

Our obsession with college as the magic bullet to success is fascinating. Simply going to college, even getting a degree, is not a guarantee of any type of success. Other than technical and professional degrees, the value of four years of college is questionable, especially considering that many students lack the basic reading, math and writing skills that should have been mastered in high school. Success in life and economically is dependent on the attitude, actions and decisions made by an individual.

6 comments

  1. I think that we are seeing the collapse of the United States. First it was bailouts during the housing crisis. Then there was the free money during Covid. Now, the government said you have no responsibilities for loans or contract law. What’s next? Forgiveness on FHA mortgages? The demand for entitlements grow louder everyday from every group. Many empires have fallen under their own debt and the Feds just keep printing money.

    And these issues are just on the money side of things. This isn’t the place to get into the corruption of our institutions, censorship, losing of our rights, the rise of crime and chaos, and the changing of the means of words to suit the agenda.

    Any forgiveness should have came with strings on the colleges. Many of the degrees that were “earned” were not worth the money that the colleges charged. Now, I fear that the colleges can continue to raise tuition because students will get loans believing that someday that they will be forgiven.

    Can you imagine if you put a lifetime loan maximin 3x the DOL annual salary listed for that degree. You would see many of these social and gender study degrees being dropped from these $50K per year universities.

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  2. The obsession with college has cost time and money for most unprepared students who attempt to go but can’t cut it or aren’t interested enough to cut it and they wind up wasting years and money when they could have been working or training towards a career. These young people have debt and nothing to show for it. Add in the people who get degrees like art history and the various “studies” degrees and you have another group who have wasted time and money.

    Joe Biden and Elizabeth Warren won’t get into the deep questions but consider themselves saviors for using other peoples money to forgive some debt. This is all the Washington apparatus is about now, arguing for money for someone at the expense of someone else. They blame tax loopholes for our fiscal problems and then pass legislation that creates more loopholes and outright giveaways.

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  3. You are missing the insidious impact of legislation coupled with the plaintiff’s bar – in terms of triggering the demand for college as a ticket to entry in the business world.

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      1. In 1993(?) the NJ State police made a college degree a requirement for applying in addition to some other options such as prior military or police experience. This was because after decades of affirmative action lawsuits that the state police and civil service was tired of trying to make things right. Instead they say that there were loans and scholarships for minorities that were available and that the state police wasn’t going to try to figure it out anymore. So hundreds got criminal justice degrees thinking that would give them a better chance when any degree would do. Many students where chasing only a few job openings. After a while, the college students figured out that there were other jobs and many of them that paid better if they got a non-criminal justice degree as a plan B. In 2020, before the summer of love, the NJ State Police drop the college requirement. They just couldn’t get enough good recruits. Also, I wondered how book knowledge was going to make you keep calm dealing with the idiots on the streets.

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      2. Well, that’s to be expected of those hiring NewJersey civil servants. Everyone else has no excuse.

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