Student debt

[Big RR]

More likely on the federal government, which, I understand, guarantees all the loans and pays the lenders in the event of default.

But then, the federal government is part of the overall scheme which involves for profit schools with big advertising budgets (I see them on TV all the time), colleges and universities which admit people without any concern as to whether they are qualified to do college level work (what they hell, it's good for a year or two tuition, and then the loan is their problem) , and the fueling of the escalating cost of post-secondary education. FWIW, I blame the federal government the most because of the lack of a coherent policy; if it is just to educate the populace (and recognizing that there is value in education in a variety of fields) they would not structure a system which forces people into areas that can result in higher paying jobs (but not necessarily so) and sets the others up for for a period of extended debt (if not a lifetime).

[Jarlaxle]

Looking at that chart, even a $10,000 forgiveness will do a great deal of good for the overwhelming majority.

In a country of 330 million people, there are a strong majority who could have a great deal of good come from $10,000 of debt relief, whether it is a car loan they needed to take out so they can have reliable transportation, medical debt, home improvement debt to make room for a new baby, debt incurred by being off work due to a pregnancy, illness, injury or government mandated shutdown, etc., etc. What is the rationale for favoring those who have student loan debt, especially when most of them are more than capable of paying off their loans, and most have already received substantial subsidies that reduce the cost of their education?

Of course...that "debt relief" will be paid by people who do not have debt and therefore get reamed instead of pandered to.

[Jarlaxle]

That makes a lot of sense. And it puts the onus where it belongs, on the lenders who finance stupid loan debt. People who borrow for a degree in "womyns studies" or the like deserve to pay for their idiocy. And idiots who give loans for such idiocy deserve to pay.



yrs,
rubato

Aren't about half of all student loans financed by the government?

[rubato]

...

Aren't about half of all student loans financed by the government?

Guaranteed by but not financed by.


yrs,
rubato

[Jarlaxle]

Distinction without a differencr.

[Big RR]

Not really, it's more like welfare to financial institutions, guaranteeing to pay them regardless of conditions, and yet also permit them to collect risk based interest.