The President’s decision to shift the responsibility of student loan debt from borrowers to tax payers, creates much more chaos than it supposedly helps. The president claims the burden of student loans is too heavy for anyone to get ahead- while at the same time the government continues to issue more student loans!
How much debt should someone starting college now be willing to take on? Should you borrow more in hopes that student loan forgiveness becomes an annual event? There are no signals to be able to make a rational decision. The loans were issued by the Federal Government. If a bank continued to give loans to someone that could not afford it until the debt load was “crushing”. The would have been called predatory lenders and would be investigated. Why are there no calls to investigate the government, while it continues to hand out loans with no change in lending criteria?
As long as the government keeps providing money colleges will continue to raise prices. We must end the Federal Student loan program. Universities will be forced to adopt market rates in order to stay open.