As a person employed by a university, I am perhaps not the most unbiased opinion in this whole student loans forgiveness issue. My job depends on the college system continuing on to be a revolving door of incoming students turning into graduates. Should the value of a college degree crater into oblivion, well, I better go find something else to do.
The students are the paying customer, that is of no doubt. And in grand American tradition, they pay in credit. How else can anyone afford to attend college when room and board for a year is the equivalent of a used car. I managed to avoid student loans because one, my family was poor enough to get me all sorts of State and Federal grants, and two, I lived at home.
I’d have signed loan papers too had I needed to pay $900 per month just to share a tiny dorm room with a complete stranger. Probably a guy named Mike from Souther California.
Students graduate with a tremendous amount of debt weighing down their financial future. Unlike other debts, students loans do not get wiped off in a bankruptcy. I wonder what were they trying to prevent when that was implemented. Seems to me they don’t want people to declare bankruptcy upon graduation to shed the school debt. The graduates can take the credit hit because they’re just starting their adult career anyways.
Piggybacking off that, I think student loan forgiveness will create negative incentive for universities. There would be no motivation to control costs (like building a lot more student housing) if there are no consequences for the students down the road. Don’t worry about the tuition increase! Borrow all you want from the government! Uncle Sam will wipe it away eventually!
We need to look at the whole thing holistically: how to lower the total cost of college, so that whatever students has to borrow can be repaid timely and responsibly. Numbers getting too large (and inescapable) is how we got into our current mess.
North east south west.