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Loan forgiveness is not a workable solution, it rewards one generation of students at the expense of the older folk who have paid and the younger folk who are n
by germamme 3y ago
Loan forgiveness is not a workable solution, it rewards one generation of students at the expense of the older folk who have paid and the younger folk who are not in college yet.
- rootusrootus 3y agoIt's especially not workable if it doesn't involve a correction to the system that let the debt accumulate to begin with. It just becomes an expectation for future generations. If anything it'll drive the debt higher, faster.
- Ekaros 3y agoGame theory would be to leverage to max with student loans and then invest the money you would have spend on tuition... Sounds like an other transfer to wealthy from poor.
- anonymouskimmer 3y agoSome students did this with crypto or other ventures in the last decade or so.
- hikingsimulator 3y agoThe former is a sunk cost fallacy, and the latter is solved by changing how education is financed -- making public universities free like most of the developped world. I took up debt to study at the graduate level, I won't use that past painpoint to defend forcing people to enter into debt now.
- HDThoreaun 3y agoForgiving the loans destroys the incentive to fix the system. Who's advocating for that now? Certainly no serious politician.
- rocqua 3y agoIt doesn't need to be free, just manageable. Cap it to 3000 a year, and things are much better. That's how the dutch system works.
- panzagl 3y agoThe older generation didn't pay- parents' ability to pay is factored into student aid decisions. Instead the older generation enjoyed lower tax rates by not funding the colleges and grants that they enjoyed.
- Turing_Machine 3y ago> it rewards one generation of students at the expense of the older folk who have paid Hmm... by that reasoning, wouldn't people who default on SBA business loans or FHA/VA home mortgages be doing so "at the expense of those who have paid"? And yet they're allowed to file bankruptcy. What's different? As I observed before, in the case of a small business there often aren't any recoverable assets, or only a small amount. In the case of real estate... I saw a story the other day where a San Francisco office building changed hands for only 25% of its price the last time it was sold, and I don't think we've seen the bottom there by any means.