No. For several reasons.
The Fed owns 92% of those loans and they just don't *poof* go away if forgiven. It's goes directly to the red side of the ledger. I should have to pay for your dumb mistakes.
Bankruptcy isn't an option else it'd encourage people to go deep into debt with the goal of going bankrupt and then waiting out the 7 year clock. It'd encourage worse behavior.
25% of the fed loans are held by people with advanced degrees. These are not "children" they are graduates who had better have known what they were doing. Zero relief.
The majority of 75% could only borrow up to "The government limits federal borrowing by undergrads to $31,000 (for dependent students) and $57,500 (for those no longer dependent on their parentstypically those over age 24)."
So that's max, debt loads.
Let's break this down. You should not be eligible to pull a federal loan for a for-profit school. They are 100% predators.
You should not be eligible for a public loan for a private school.
Soulutions: fix the 2 items above and overhaul the accreditation process for .edu's.
Drop the interest rate to 1%, the fed shouldn't also be a predator.
No relief for advanced degrees.
Encourage people to work in the public sector for 10 years for debt forgiveness. 15 if your debt is the result of graduate school.
Require debt and degree counclining so students fully grasp what degree they're going for and it's ability to pay off the debt it requires.
Reduce the cost of tuition and audit schools for what they're spending their finances on. Some of the new dorms at A&M are ridiculous. You do not need 5* accommodations at 18.
All debt isn't the same and it shouldn't be treated equally. Only 6% of borrowers owe more than $100k and they buried themselves via graduate school.
https://www.brookings.edu/articles/who-owes-all-that-student-debt-and-whod-benefit-if-it-were-forgiven/
The Fed owns 92% of those loans and they just don't *poof* go away if forgiven. It's goes directly to the red side of the ledger. I should have to pay for your dumb mistakes.
Bankruptcy isn't an option else it'd encourage people to go deep into debt with the goal of going bankrupt and then waiting out the 7 year clock. It'd encourage worse behavior.
25% of the fed loans are held by people with advanced degrees. These are not "children" they are graduates who had better have known what they were doing. Zero relief.
The majority of 75% could only borrow up to "The government limits federal borrowing by undergrads to $31,000 (for dependent students) and $57,500 (for those no longer dependent on their parentstypically those over age 24)."
So that's max, debt loads.
Let's break this down. You should not be eligible to pull a federal loan for a for-profit school. They are 100% predators.
You should not be eligible for a public loan for a private school.
Soulutions: fix the 2 items above and overhaul the accreditation process for .edu's.
Drop the interest rate to 1%, the fed shouldn't also be a predator.
No relief for advanced degrees.
Encourage people to work in the public sector for 10 years for debt forgiveness. 15 if your debt is the result of graduate school.
Require debt and degree counclining so students fully grasp what degree they're going for and it's ability to pay off the debt it requires.
Reduce the cost of tuition and audit schools for what they're spending their finances on. Some of the new dorms at A&M are ridiculous. You do not need 5* accommodations at 18.
All debt isn't the same and it shouldn't be treated equally. Only 6% of borrowers owe more than $100k and they buried themselves via graduate school.
https://www.brookings.edu/articles/who-owes-all-that-student-debt-and-whod-benefit-if-it-were-forgiven/
aTm '99