As someone who stood to gain greatly from Biden’s plan, I do begrudgingly agree. This is a bandaid on a bone fracture that would just leave us in the same place in 5+ years.
The system needs an overhaul, anything less is a waste of money.
The system needs an overhaul
Nah, just make it legal again for bankruptcy to erase student debt. Exploding tuition costs only became a thing when that law was changed. “You mean we can charge whatever we want, loan it out to unqualified borrowers and they’re on the hook for life with no way to discharge it? Awesome!”
If bankruptcy could discharge tuition debt again, you’d see a wave of defaults, then tuition costs would crash back to affordable levels that were actually reasonably able to be paid off - at least, it would be less painful than what declaring bankruptcy would do, which is exactly the point. 🤷♂️
Congress would never permit that - it’d have a domino effect on an economy that’s still struggling to emerge from the problems introduced by the covid pandemic. no, the reality is that people that have loan payments coming due are going to have to pay them or watch their wages get garnished (probably the latter, they’re not capable of making intelligent decisions, after all).
maybe, just maybe, this will be a moment of realization for some of them and they’ll learn from their mistakes. might be a pipe dream though!
You’re right, but I don’t think congress would permit it simply because it would also tank their investments. The smarter play would be to grandfather-in existing student loans, and make all future loans susceptible to bankruptcy - but that would also have its own knock-on effects. Either way it’s a shit sandwhich that should have never existed in the first place.
