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> we're just moving the debt from the people who took it out and benefited from it, to other unrelated taxpayers who get stuck with the bill. That's always the
by lapcat 3y ago
> we're just moving the debt from the people who took it out and benefited from it, to other unrelated taxpayers who get stuck with the bill.
That's always the case, regardless of whether the debt is paid back later.
With government-sponsored loans, which are most student loans nowadays, the money is disbursed from the tax revenue and goes immediately to the universities and students to pay for tuition and other expenses. After the student leaves college, the loan is paid back slowly over many years. But note, crucially, that the identity of the taxpayers also changes over time. Taxpayers retire and/or die, new taxpayers enter the system, worker incomes change over time, indeed tax rates themselves change over time. It's never the case that individual taxpayer X is directly paid back for their tax money that went towards the disbursement in year YYYY.