Is Student Loan Debt Forgiveness a Good Idea? We cannot fix a Keynesian economic system that is on the verge of total collapse with a free market economic system unless you start over.In a Keynesian system money is debt and cannot ever be repaid back or their would be no money left in circulation. The only solutions without suffering an outright dollar collapse is debt forgiveness,and debt reduction,which would cause some inflation.
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 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. According to Prof. Lin, making student loans dischargeable in bankruptcy is a good first step in reform aimed at resolving student debt and rising tuition costs
Bull Sheeeeeeeeeeeeet
ReplyDeleteCollege graduates do not get better paying jobs I know appliance repair man earn more and a lot of McDonalds are hiring college graduates. These loans are now hedge funds on Wall Street another bubble to crash. Remember this money is made up in thin air and interest is charged. It is an insane world we have.
Nobody ever forgave my debts ! ! ! THIS IS HABIT-FORMING and overall can come to no good end. First have America's colleges and universities forgive ALL tuition, and THEN come and talk to me...!
ReplyDelete