Clearly there’s a faculty price/student loans subject within the US proper now, however I believe plans to forgive all student loan money owed is dangerous as a result of is it rewarding those that lived lavishly and didn’t pay them off and punishing those that lived frugally to repay their loans (as a result of they needed to pay for sowmthing others didn’t). Now there are the individuals who lived frugally and nonetheless can’t afford to begin paying them off, however I’ll come again to that.
I believe a extra honest system can be one thing like decreasing the quantity owed by one thing like 50%. Someone who put their a refund into paying off half their loans are actually completed. People who paid off 10% of the unique quantity now have 40% left, and so on. Interest must also be decreased. It ought to nonetheless be greater then inflation so there’s a purpose to pay again the loans but it surely must be lowered from the present charges.
For those who can not afford to place any cash in the direction of student loans, maybe a foul job market or they’d a child, then all their debt must be forgiven or at the least placed on maintain till they’ll discover a job/earn extra money. To decide that, I’d say take a look at their revenue, price of dwelling for the place they’re, and what number of dependents they’ve, and beneath a sure degree will get full debt forgiveness or freeze.
I believe this may be good to not price as a lot and be extra honest to those that put their cash in the direction of paying off their loans. The US already pays $380 billion per 12 months simply in curiosity on the debt, we are able to’t simply preserve spending increasingly more. Think about how a lot we may do with $380 billion per 12 months if we didn’t must pay all that curiosity. Large spending could assist in the quick flip, but it surely’ll probably simply harm in the long run. So that is my suggestion to cut back student debt for much less then $1.7 trillion.
Edit: as considerably of a clarification, I’ll phrase it this fashion.
“Free” or low-cost faculty is nice, however we don’t have that proper now and till we do, I don’t assume we must be paying for some folks’s faculty and never others, which loan forgiveness can be doing. It’s extra honest to simply pay for everybody’s faculty equally, identical to the European nations progressives idolize. And since we’re doing that by way of loan forgiveness as a substitute of decreasing the upfront faculty price, then we must always give the identical loan forgiveness to everybody.
Edit2: hey this isn’t that removed from what I’m saying, the senate minority chief is suggesting $50,000 in aid, personally I used to be pondering extra like within the vary of $25-30,000 if it was a flat sum however he most likely is aware of extra in regards to the state of affairs then me. https://www.cnbc.com/2020/11/16/schumer-suggests-student-debt-forgiveness-through-executive-order.html
Also feels like the home handed a invoice for $10,000
If it wasn’t clear, I didn’t imply it needed to be a p.c of what the student was paying like say 15%, it may be a flat quantity to repay a p.c of the debt just like the $10k proposal above.
Edit3: quote from an knowledgeable
Some additionally thought that loan forgiveness is merely a bandaid resolution to a bigger drawback, which is how costly faculty tuition has grow to be. Because of this, Matthew Cuplin of Midwest Financial Group mentioned it opens up “Pandora’s Box with regards to many questions.”
”Who will get it canceled?” he requested. “What about those who made sacrifices and saved for this expense? Does it devalue the importance of the experience? Would students take it less seriously?”