Matt Walsh explains why student debt "cancellation" is immoral.
In addition to his points, consider all who have obliged themselves to student loans in the past and have, with self-denial and hard work, repaid them. Should they get reimbursed?
The current bankruptcy law was a reform. Graduates were declaring bankruptcy ASAP as the fastest way to get out of debt. Lenders were then reluctant to make any loans unless fully secured by cosigners. That state of affairs hurt the poor the most.
The real problems are worthless degrees (as you noted) and the absurd tuition. The cost structure is way out of whack. Quality education could be offered for far less, but as long as everyone can get loans there is no incentive.
I think a good reform would be to limit the amount the government will secure to what can be repaid in the field of study in a reasonable time.
@George I think the absurd tuition is a direct consequence of the guaranteed loans. Guarantee a loan and then make it virtually impossible to declare bankruptcy and you get a gravy train for colleges to jack up tuition. Perhaps tightening up requirements for declaration to eliminate abuse, but not make it so difficult that people take forever to pay it off, cannot get mortgages, etc. This just fuels the debt cancellation movement.
When the person paying for the tuition is far removed from the school itself there is no accountability.
If students had to pay for their schooling, instead of parents/government/corporations/etc. the choices about what makes a school good and how much that degree is worth would be a totally different equation.
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