FACT SHEET: President Biden Announces Student Loan Relief for Borrowers Who Need It Most https://www.whitehouse.gov/briefing...t-loan-relief-for-borrowers-who-need-it-most/
Student loans need to be completely re-examined. We wouldn't lend $100K to any 17-24 year old without very good assurance that the loan would be productive and provide returns for society and the person receiving the loan. However we routinely hand sums like that over 4-6 years to young people unlikely to be able to repay them over the course of the decade after they graduate. Student loans need to be scaled by productive return. AD's, BA's and BFA's should be eligible for minimal loans and should not be available for students at schools with high tuition rates. We don't need to hand big schools more money they have more than enough of that as it is. These loans should be available for students attending community colleges and small liberal arts schools that are completely non-profit and that match loans 1-for-1 to reduce the burden on society and the loan takers. BS, BAS, BArch's, these are all loans that make sense because the person receiving them is likely to be able to make enough to repay them in a reasonable timeframe. Same for specific Pre-Law, Pre-Med and BBA's. Society also gets highly trained professionals out of this series of loans - with some wiggle room on the BBA's. Law, Medical, Business and other post-graduate degrees should be eligible based on the likely return. PhD's can be totally poverty stricken based on the fields they enter and their determination of specialization should also determine what loans are available. Going to school because it is the thing to do is just fine if you can afford it. For people who can't the return on investment both for the person and society needs to be heavily factored in. One of the things that rationalizing school loans would do is to lower overall tuition rates. The schools can only charge what is out there and right now there is too much cash chasing the finish line with not enough return afterwards.
This isn't good policy right now in the face of high inflation. Also, if the Democrats want to avoid the inevitable resentment, they should pass a bill in the House that gives equal relief to people who paid off their debt/went to public colleges/didn't go to college. And then make the Republicans block it in the Senate. But they won't do that of course becuase they aren't that smart, plus they don't really care about non-Democratic voters.
I don’t know that I agree with everything here, but I do agree with the second paragraph. A lot of this could be done through K-12 education as to what the costs of college are really going to be and what the returns are going to be. But they don’t discuss any of this and college is idealized a bit too much while you’re told you’re a dirtbag if you become a mechanic or a welder. Universities are massive corporations at this point. I sell technology into them and it’s rather disgusting how much money they are willing to throw around and throw away every couple years.
Very few degrees should be eligible for student loans, but that shouldn't absolve delusional students and their parents for their irresponsibility in taking out a loan. The only reasonable and just solution by the government would be to waive the interest to reduce the burden, but the principle is what they asked for. There is no just reason to waive any debt other than for political favorability. The proliferation of student loans is what has driven up the cost of college tuition -- schools knew they had a pipeline of funds and an irrational consumer base that will assume an irresponsible debt to experience the college experience they had been sold by entertainment.
My issue with no loan forgiveness is that the entire thing has been a racket for 30 years now. The government, private lenders and educational institutions have conspired to inflate the overall cost of education while giving out what are essentially bad loans in the process. This goes back to the late 80's when Wall Street reset the expectation of what proper returns on investment should be (for investors). Since then everything has gone to hell in a hand basket because if you cannot provide a large annual return (7%+) consistently your business model is essentially dead. It doesn't matter if what you produce is necessary to the long-term function of society you are still going to get slammed over time and driven out of business. 7% is about the minimum and the reality is that everybody is trying to put their money in higher returns than that. This is why the cost of education has gone through the roof. It's why government infrastructure packages have such a hard time getting passed. It's why local infrastructure packages are almost non-existent and why what local investment does occur is usually aimed at housing and in ways that dramatically inflate housing prices. America doesn't have a cultural understanding of what is important to invest in because private investment is an exercise in kiting wealth through the roof. Even public institutions that should know better, like hospitals and universities, play the game.
Yes. In other places you invest in education simply because you value having educated citizens. You build roads or tunnels so people can get around. When the government invests in those things they don't have to point to the financial return. Were in a bad place now where government action is being tied to financial standards that they shouldn't be tied to, when it doesn't apply to 90% of the citizens anyway. That's how we end up with Republicans toasting with champagne on the Rose Garden because they gave tax cuts to millionaires, but something like this is more controversial
I’m up in the air as to feel about this one but do you ever have any sort of issue with government spending money on a shitty way? You’ve defended it for the past several years here, no matter what. Surely they can’t be consistently spending the right way no matter what in your eyes, can they?
there’s a long list and you are wrong about me with the no matter what statement. Actually I’ve said consistently that the Department of Homeland Security which is something like $50 Billion annually! Is such a waste of money.
No argument there. The government should never have gotten involved in it, but they not only have but they are the obvious ring leader in the consortium. The very existence of student loans has both driven up the cost of education and driven down the value of the education because it no longer serves any any sort of identifier of accomplishment. And the result is not a surprise. Hapless students become barely competent participants in the workforce, but are now saddled with debt that bought them an education that was never going make them any smarter, more competent or greatly improve their financial potential. And all the education cronies have fattened their pockets.
Fuck college. Go to a trade school. There's a shortage of plumbers, electricians, etc and the young adults today couldn't wire a hanging light fixture if their next bag of weed depended on it.
Wonder what she would need the loan for , or how she even got it. It was supposed to be for businesses I thought
