Tag Archives: debt forgiveness

Student Loan Debt And Fairness

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Democrats say they pride themselves on preaching fairness when debating issues. But that sincerity flies out the door when it comes to their pet projects, such as student loan debt.

New York Congresswoman Alexandria Ocasio-Cortez is urging her colleagues to pressure Joe Biden to wipe out student loan debt, which now stands at $1.7 trillion, should he inherit the White House. Never mind the dedicated souls who toiled through multiple jobs and double shifts to pay off their loans. Not only would such a lamebrain move make a mockery of the system, but there also is no doubt college tuition rates will skyrocket.

Forbes Media Chairman and former Presidential candidate Steve Forbes says there is a fairness issue to all of this. “It makes the people who took their obligation seriously look like fools. If they have this debt forgiveness of any kind of scale, you’re going to have people wondering why should I pay those obligations, why should I take those extra jobs, why should I sacrifice a private university to go to a public university to save money and honor my obligations?” Here’s more with Forbes on the Fox Business Network.

The Painful Global Debt

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Former Fed insider Danielle DiMartino Booth says the $250 trillion global debt is going to be a painful and messy problem to resolve. What about a giant global debt forgiveness such as a debt jubilee? DiMartino Booth warns, “I am not so sure something like a debt jubilee, where all countries are supposed to hold hands and sing kumbaya, I don’t know that scenario necessarily unfolds. . . . The debt will not be forgiven willingly.”

Join Greg Hunter as he goes One-on-One with Danielle DiMartino Booth, founder of Quillintelligence.com.

Student Loan Write-offs?

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Student loans are difficult to repay in a sluggish economy, and many recent graduates are struggling under considerable debt. One proposal is forgiving student loans, but Prof. Daniel Lin from American University in Washington DC argues that debt forgiveness does not resolve the underlying causes of rising student debt, and therefore cannot prevent future debt problems.

Instead of debt forgiveness, Prof. Lin suggests making student loans like other types of loans: dischargeable in bankruptcy. This places the burden on lenders to ensure that students are not taking more debt than they can handle. While it would lead to a reduction in the amount of loan dollars awarded and increase interest rates, these are natural incentives that encourage borrowers to be more careful right now, and in the future, which puts pressure on colleges and universities to control their costs. H/T Learn Liberty