Student Loans: Time For Reform

Showing compassion to those who have made bad decisions does not require that we allow them to profit at the taxpayer’s expense.

Over the last year, calls for mass forgiveness of student loans have grown louder. While this debt is a burden that affects millions of Americans, outright loan forgiveness is both profoundly unfair to the taxpayer and to all who have dutifully honored their financial obligations.

I agree with the argument that the current loan system is flawed and in need of reform, and I also understand that some people are simply unable to repay their loans and will remain forever in that condition.

So what is to be done?

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8 thoughts on “Student Loans: Time For Reform”

  1. Fabius, what in actual tarnation is going on? Are you alright? I am sure I am not the only one who wants to know!

    1. Busy with work, hence the shares from my blog over at Reading Junkie. All is well, though. Nothing to worry about.

  2. For those that wasted their time and loan getting that degree in Gender Studies, Art History, Communication, Journalism, or any other education path which provides little or no real world employment opportunities, I have no sympathy. They made their choice because it “felt good” rather than because it made sense. Let those decades of debt be a learning experience.

    That said, the education loan system does need to be reformed. Optimally government would get out of it and give it back to for profit organizations. That would eliminate 90% of the unless degree fields, because it would be as it was in the past, either convince a bank that your education plan has an acceptable ROI or pay your own way.

    Another option would be to hold education institutions accountable. If the education they provide has no practical application, make them back the loan for it. I especially like this idea, because it would force those hotbeds of marxism to stop pushing that commie crap.

  3. I graduated from a respected state university with a degree in Landscape Architecture in 1974 with $2500 in student loans, to get through the last 2 years. I needed the loans because I was living in cheap married student housing with a wife and baby. I suspect the cost is considerable more now, even accounting for inflation, but I did not enjoy luxury student housing, fitness centers, etc. Repaid the loans plus the relatively low cost birth at the University teaching hospital. The degree served well over the years and am now retired comfortably. I suspect that the increased cost of both public universities and teaching hospitals is due to reduced funding over the years from state legislators, in the chase for reduced taxes. Helping people helps the economy.

  4. So FabMax is opposed to loan forgiveness for America’s students? How does he feel about forgiving other government loans? Farm loans are forgiven every year, as are SBA loans, and a variety of HUD loans. Indeed, digging out some old history, one-time Presidential front-runner Jeb Bush borrowed to finance an apartment building and when the rental market slid, so did Jeb*. Was that OK? How about loans to Israel? Every couple years after Israel has received a couple Billion in loans, Congress dutifully forgives the previous loans and authorizes yet new loans. How does that fit with the Fab’s money sense? They borrowed the money, didn’t they, why shouldn’t they pay it back? The thing is Israel, Jeb Bush, housing projects, cities, small business, big business and farmers ALL BORROW and ALL, at one time or another, are FORGIVEN. Why the hard on for students? Let’s cancel loan-cancellations for everyone (howabout that for cancel culture?) How should we deal with true hardship? Allow anyone who can make a showing that they are truly underwater to a Bankruptcy Court. If the Court so finds, then they are allowed the bath. Students cannot file for a BK now, but, farmers, business, housing developers and Donald Trump, can !. Let us even the playing fields. *

  5. Agreed. Forgive all student loans and let’s state over with a new system before the bubble pops. Navient/Sallie Mae announced they are OUT of the federal student loan business this month by the way.

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