Stimulus idea: How about massive forgiveness of student loans?
posted at 4:01 pm on March 24, 2009 by Allahpundit
Nothing on this yet from Congress or The One, but a Facebook group dedicated to the proposal has 138,000 members and counting. No typo. My sense of personal responsibility says no but my debt-crushed monthly budget cries proceed:
Tax rebate checks DO NOT stimulate the economy – history shows that people either spend such rebates on paying off credit card debt, or they simply save them, doing little to nothing to stimulate the economy…
Forgiving student loan debt would have an IMMEDIATE stimulating effect on the economy. Responsible people who did nothing other than pursue a higher education would have hundreds, if not thousands of extra dollars per month to spend, fueling the economy NOW. Those extra dollars being pumped into the economy would have a multiplying effect, unlike many of the provisions of the new stimulus package. As a result, tax revenues would go up, the credit markets will unfreeze and jobs will be created. Consumer spending accounts for over two thirds of the entire U.S. economy and in recent months, consumer spending has declined at alarming, unprecedented rates. Therefore, it stands to reason that the fastest way to revive our ailing economy is to do something drastic to get consumers to spend…
I am in no way suggesting that the lending institutions who manage such debts get legislatively shafted by having these assets wiped from their books. The banks and other financial institutions are going to get their money regardless because, in addition to the $700 TARP bailout, more bailout money is coming their way (stay tuned!) – this proposal merely suggests that educated, hardworking Americans who are saddled with student loan debt should get something in return, rather than sending those institutions another enormous blank check. Because the banks are being handed Trillions of dollars anyway, there would be no danger of making funds unavailable to future borrowers…
Washington cannot simply print and borrow money to get us out of this crisis. We The People, however, can get this economy moving NOW. All we need is relief from debt that was accrued under the now-false promise that higher education equates with higher earnings.
Unfair to those who repaid their loans or didn’t have loans in the first place? Sure — but no more so than dumping oceans of TARP cash on the banks that created the crisis. And if, if the stimulus effect of loan forgiveness is as profound as these guys think, taxpayers would be repaid in the form of a quicker economic rebound. One question, though: Why do they assume forgiven debtors would spend the savings instead of pocketing them or using them to pay off other debt a la tax rebate checks? The answer, maybe, is the sheer amount of money we’re talking about. In my case, forgiving federal loans would save me north of $8,000 a year; toss private loans in there and it’s a cool ten grand. I’d sock some of that away, but with tens of thousands dollars suddenly freed up, I’d also start looking at home prices in the area. Stimulating! Exit question: Who’s onboard?
Blowback
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*kookoo
Alana on March 24, 2009 at 6:09 PM
How about just extending automatic funding up to higher education? One catch, you have to be a citizen that would otherwise be college-eligible.
sethstorm on March 24, 2009 at 6:09 PM
I hate taking the time to write a well thought out post only to find it becomes the last post on the page before a new page is started.
tommylotto on March 24, 2009 at 6:10 PM
Here’s a thought. QUITE HANDING THE FUCKING BANKS ANY MORE MONEY SO THAT THEY CAN JUST STUFF IT IN A VAULT!
GarandFan on March 24, 2009 at 6:10 PM
Texas Dude: Bad Form Dude, sounds like that Christian College is teaching you some worldly things like trying to abandon keeping your word. Try Psalms 15 on for size to reorient your thinking.
There are lots of ways to go to college without breaking the bank with student loans. I made it through while raising a family without borrowing. Bachelors (Microbiology/Chemistry)and Masters Degrees (Project Management). It takes a little more time but so what. My daughter got through college without borrowing also (Bachelors/JD). Funny thing was a number of her friends got through at the same time (took them just as long) were 50 – 100K in debt. They still live in apartments and are paying off students loans. They made fun of her, but she has a bundle put away for retirement and is paying extra each month to pay down the mortgage of the house she will fully own in about 9 years. My son could program in 5 languages by the time he was 16 (self taught). Started college to get a Computer Programing degree only to realize he actually knew more that the Professor trying to teach the class. Went out and got a programing job and now is the senior consulting programmer for his company. Also doing quite well with no college debt. This country has lost the concept of hard work to get somewhere especially where school is concerned. Most students would be farther ahead by paying as they go. It might take 6 or 7 years instead of 4 but they would be immeasurably farther ahead financially if they did.
As to the idea that it would allow those who had their debt forgiven to stimulate the economy by having more disposable income. I beg to disagree, you are going to take my money that I could use to stimulate the economy and you will use it instead. So I have less money to stimulate the economy while you have more money by the exact same amount. That’s a wash, their is no gain for the economy in this situation.
chemman on March 24, 2009 at 6:11 PM
No.
Furthermore, what are you doing buying that Keynesian crap about the need to have people spend more money. The assumption that spending stimulates the economy and savings doesn’t is silly. It’s ridiculous, what we need are more savings, because that means more investment.
How does spending stimulate the economy? One person buys, the person that sold now has money which he in turn uses to buy, and so on. The multiplier effect. The great insight is that the money doesn’t stay “stuck” with one person.
However, Keynesians then claim the same doesn’t occur with savings? Sure, if people are stuffing their mattress with their savings- but not when they put it in the bank. The bank doesn’t just hold onto that money (unless it’s one of these banks that essentially overloaned- but that would be a good thing for them to rebuild their reserves)- the banks loan it back out. The more money the banks have, the more they can loan out.
And unlike spending, savings usually get turned into investments, which increases efficency, which is the best thing to happen in a recession- that’s what a recession is, we allocated our resources inefficiently, and now we need investment monies so that we reallocate our resources properly. That takes money- and the main hold up on the recovery is that that money isn’t available, because banks aren’t lending, because they aren’t confident in loaning money out.
The Fed is trying to persuade the banks to loan, by increasing the money supply, so the banks feel they have access to money. Increased savings by individuals would help increase this pressure (but without the same bad effects of inflation). However, the fiscal policy (ie Obama) keeps undermining this plan by creating uncertainty that the banks will be able to keep their profits.
As long as everybody is worring “What will the US government do next” they will keep putting off the investment plans until they have greater certainty, and then we will get trapped in an inflationary cycle, because the Fed increase in the money supply will drive up inflation, but if there is no recovery that means the Fed will have basically shot it’s only bullet and missed. And high inflation decreases the incentive to loan money, which will then keep us trapped in a lost decade just like Japan. All because the fiscal side can’t get it together.
It seriously is like the Great Depression all over again. Back then the Federal Government tried inflationary fiscal policy, but it was at cross purposes with the Fed which had adopted a deflationary monetary policy and thus resulted in a worse situation than doing nothing. The Great Depression was all the government’s fault. So will the coming “Long Recession” (I doubt it will get as deep or as long as the Great Depression, but that’s assuming Obama is completely incompetent. If he’s competent at the political task of getting his incompetent policies enacted, who knows how bad it will get.)
Geez, at this point the very best thing Obama could do, is to announce he’s going to do nothing, do nothing, and veto everything that passes Congress until the economy gets going again.
Let Ben Bernake put it back together, since obviously Obama has no clue what he is doing. The first rule of economic policy is the same as medicine: “First, do no harm” Obama needs to learn that lesson quick.
Sackett on March 24, 2009 at 6:11 PM
What would be interesting is if Hussein or any of his staff acknowledge the number of signers to this petition but not the number of signers to the Notre Dame petition, which, as of this moment, is at 87,000+.
But on to the subject… I’m 39, and I have student loans. I intentionally left working for medical insurance companies to get a paralegal degree. I’m still unemployed, but not because of the economy but for lack of experience as a paralegal (a catch 22). Still, I do no support this petition. Some of my friends with whom I had gone to school paid out-of-pocket. That would not be fair to them. And I would not feel good about it.
I paid for college right out of high school. I found a way then; I’ll find a way now.
madmonkphotog on March 24, 2009 at 6:13 PM
That’s obstructionism, plain and simple.
sethstorm on March 24, 2009 at 6:14 PM
Here’s a better idea- how about we start tapping into the $50 billion endowments of Harvard and Yale?
Chuck Schick on March 24, 2009 at 6:14 PM
At this point, they’re in the minority.
sethstorm on March 24, 2009 at 6:15 PM
Those are highly selective universities, explain further.
sethstorm on March 24, 2009 at 6:16 PM
Excellent!
scalleywag on March 24, 2009 at 6:17 PM
Take it from them give it to others who need it. Do you not believe in that anymore?
Chuck Schick on March 24, 2009 at 6:18 PM
Well for all of the losers that want me to pay for their student loans after I worked my way through college; welfare, Lone Star card, socialized medicine, debt forgiveness, free homes, business bailouts, needle exchange, food stamps, subsidized rent, ect… So you want to trade all of those for your freedom?
Johan Klaus on March 24, 2009 at 6:20 PM
I see what you’re doing there.
It would be extended to all universities, with no ability to refuse a US citizen.
sethstorm on March 24, 2009 at 6:20 PM
Call me one too. Also- how about making it retroactive for those of us who diligently made their payments year after year.
anniekc on March 24, 2009 at 6:21 PM
That is fine. You pay for it.
Johan Klaus on March 24, 2009 at 6:23 PM
sethstorm on March 24, 2009 at 6:14 PM
The best man in a storm is usually the one who tells all the panic stricken passengers to sit down, shut up, and just endure the storm until it passes, cause there ain’t anything else to do about it. Thus keeping them from engaging in stupid self-destructive action.
Why does everybody feel this intense need to do something even if it means doing something stupid.
I wish Calvin Coolidge was President.
Sackett on March 24, 2009 at 6:23 PM
But Harvard and Yale are rich- they’re not spending it in a way that expands higher education to the masses.
So lets take it like we did with AIG bonuses.
Chuck Schick on March 24, 2009 at 6:23 PM
Taxes can cover it quite nicely.
sethstorm on March 24, 2009 at 6:24 PM
My idea leaves no room for evasion.
sethstorm on March 24, 2009 at 6:24 PM
Then you pay extra and I will pay none.
Johan Klaus on March 24, 2009 at 6:25 PM
Good points. Saving is not really good for the economy, because it takes money out of circulation, but people do not really “save”. they actually put that money into a 401k or SEP filled with mutual funds or some other instrument that earns interest and in fact puts that money back to work financing R&D or some corporation’s capital improvements. People either spend their money or invest their money. Spending helps an economy, but investing helps it and makes it grow. Few people just save. I have heard it said that the Viking raids are what pulled Europe out of the dark ages, because the Vikings pillage all the churches that were hoarding all the gold. That money was finally put back into circulation and whala, Italian Renaissance. Obama is trying to encourage spending and discourage investing. Maybe he is qualified for the Special Olympics after all.
tommylotto on March 24, 2009 at 6:25 PM
Taking their money doesnt either- and my way gets us far more money.
You in?
Chuck Schick on March 24, 2009 at 6:25 PM
Universities dont pay taxes. Lets make them start.
Agreed?
Chuck Schick on March 24, 2009 at 6:26 PM
My, but you present such convincing counterarguments.
Oh I would…if it didn’t mean I waited years on the odd chance that I could GET a $75,000 job. My father has been working his tail off at the same place for decades and he doesn’t make that much!
Bullshit. My pastor’s daughter signed up on a whim, and is now a medic in Iraq. I once made the mistake of asking her for the inside dope on army life when she was home on leave…and that was the day my uninformed Yankee Doodle notions were put to rest for good.
I know that. You know that. But there’s hardly an employer left who’ll consider you if you don’t have a college degree in something, at least for any decent job.
The problem is that the ante has been upped, so to speak, and anyone who doesn’t have the magic sheepskin pretty much has their applications stored in the ’round file’.
Dark-Star on March 24, 2009 at 6:30 PM
For all of the folks that think that we do not pay enough taxes, you can always volunteer to pay more taxes.
Johan Klaus on March 24, 2009 at 6:32 PM
No effin’ way. I paid mine off, they can, too.
irishspy on March 24, 2009 at 6:33 PM
I’m not an immigrant without resident status. I’m a full-blooded and multigenerational citizen. Swap it around if you’re not a citizen of the US.
There are 2 distinct paths:
• Discourage the degree from being used as a job requirement; massive tax cuts for those who do not require it but are willing to consider citizens with experience in the field.
• Remove the funding problem on the student end so that they can obtain the supposed “necessary” education.
Unless those two or some form that mixes those is enacted, we’re still going to have problems with our citizens. Open borders and H1/L1/offshoring evasion won’t fix it.
sethstorm on March 24, 2009 at 6:34 PM
I only had to do a tour in Iraq to get rid of the bulk of my student loan.
rob verdi on March 24, 2009 at 6:35 PM
…acting as an enlisted “human shield” member of the military?
sethstorm on March 24, 2009 at 6:36 PM
I do not want to pay for yours or anyone elses degree. I worked my way through college, making sixty cents an hour for forty eight hours a week in a service station, while taking nineteen hours a semester.
Johan Klaus on March 24, 2009 at 6:41 PM
Different times.
sethstorm on March 24, 2009 at 6:41 PM
Not viable in this age and time.
sethstorm on March 24, 2009 at 6:43 PM
I’d rather just pay to blog here and hope that it put some extra change in Allah’s pocket.
Cindy Munford on March 24, 2009 at 6:44 PM
Sounds like you do not have much respect for the military.
Johan Klaus on March 24, 2009 at 6:45 PM
You want it, you pay for it.
Johan Klaus on March 24, 2009 at 6:46 PM
…or they don’t have much respect for the enlisted.
sethstorm on March 24, 2009 at 6:48 PM
…as a citizen who pays his taxes, doing that with tax dollars would still be valid – at the government level.
sethstorm on March 24, 2009 at 6:49 PM
Who is they, Obama?
Johan Klaus on March 24, 2009 at 6:50 PM
In which Constitution?
Johan Klaus on March 24, 2009 at 6:51 PM
…by taking it from the colleges with the highest endowment-to-student ratios and redistributing it to the public schools.
Chuck Schick on March 24, 2009 at 6:51 PM
The military for how they consider the enlisted as a “human shield” for not having a degree.
sethstorm on March 24, 2009 at 6:51 PM
I do not think that you know much about the military.
Johan Klaus on March 24, 2009 at 6:54 PM
I believe you’re talking about state “land grant” universities, where no resident should be given second class status, including pursuing their major.
sethstorm on March 24, 2009 at 6:55 PM
Dark Star
I assume those who join the army accept the danger and hardship that comes along with the responsbility. If anyone thinks the army would pay you to “murder” people, or otherwise morally object to armed conflict, then they’re free not to join.
How exactly does anyone join the army on a ‘whim’, espeially post Iraq War? I know some who serve in the military myself. Yeah, they tell me it’s no walk in the park, especially in Iraq. But the benefits promised by the army certainly appears to be there. You don’t actually have to be involved in actual combat to eligible for benefit, if I’m informed correctly. One of my friends is embedded with the army to check water supply.
I’m buried in student loans, and believe you me, I’ll never join the army no matter what they promise. I’m not fit for service, frankly I’m afraid, and they’ll probably reject me if I tried.
Mad Kimchi on March 24, 2009 at 6:55 PM
Forgiving student debts? Wow, what a bad idea.
DarkKnight3565 on March 24, 2009 at 6:57 PM
Then enlighten me to the contrary on them being treated like they are expendable “human shields” for the officers regardless of their specialization or intellect.
sethstorm on March 24, 2009 at 6:57 PM
Are you for or against my plan, Seth?
Chuck Schick on March 24, 2009 at 6:59 PM
please, please pay off my loans.
it’s better than throwing billions of dollars at failed institutions…
Opinionnation on March 24, 2009 at 7:01 PM
sethstorm,
Actually I have a masters in education administration, I almost finished one in history, and I happen to teach High School. In point of fact I joined the military after I had most of college education, sometime around October 2001. As for expandable shields, a mortar attack (and that was the most common danger for my unit) knows no rank.
rob verdi on March 24, 2009 at 7:02 PM
And if we would like to pay but can’t?
Dark-Star on March 24, 2009 at 7:02 PM
Your beliefs in that plan are not genuine in how they are being devised; it is only an attempt to divine a political bent or make for cognitive dissonance. You deliberately limit the scope to two major Ivies that are popular targets.
My idea is a superset of yours, with no distinction made except that no citizen is to be denied a college education, nor be distracted by its cost.
sethstorm on March 24, 2009 at 7:06 PM
Can you explain how this is different from paying someone else’s mortgage? Isn’t this another loan that someone took without thinking how they were going to repay it?
mph on March 24, 2009 at 7:08 PM
She won’t say exactly and I won’t repeat the rumors. But she signed on before the Iraq war…bad timing.
Same here. My short term memory is so bad, it would probably end up costing my nation a lot of money and/or someone’s life. I’d be fit only as cannon fodder or a REMF deskwarmer at best.
Dark-Star on March 24, 2009 at 7:08 PM
Sort of like your support for, oh I don’t know, divining a political bent deliberately limiting the scope to one major insurance company that is a popular target?
Chuck Schick on March 24, 2009 at 7:10 PM
Pshah…what’s another trillion?
And instead of honoring your current loan agreement, which has an end date, why not settle for a “slight” increase in your tax rate that you will pay the rest of your life? Where do I sign up! But seriously, this is really just a shell game. Kinda like witholding taxes from your paycheck. You still pay it, you just don’t have to see/know that you’re paying it.
Onus on March 24, 2009 at 7:12 PM
Allahpundit, you should be fired for suggesting it.
What’s next, free tuition for illegal immigrants?
Maybe you’d like us to make your car payment too?
A bailout of student loans is a bailout of every liberal Professor in this country. Come on, think it through, I expected better from you, it evidently wasn’t an MBA you got incurring this debt.
mngirl on March 24, 2009 at 7:19 PM
Now makes me wish that I had racked up a student loan to forgive.
CynicalOptimist on March 24, 2009 at 7:28 PM
I’m in.
DeathToMediaHacks on March 24, 2009 at 7:30 PM
Hell, why stop there…how about a little help on the car loan, maybe for the ‘ol hacienda too. I think we’d be far better off today if they gave each taxpayer $150,000 and let all these financial institutions and mega-companies fail.
Wyznowski on March 24, 2009 at 7:35 PM
Yeah me too. It’s not like theres any sort of issues with the national debt or entitlements we have to worry about.
Throw it on the pile.
Chuck Schick on March 24, 2009 at 7:35 PM
I do not drive a Ferrari, have a yatch, a five hundred thousand dollar house or a Rolex watch. I got only what I could afford. I pay my debts, you pay your debts.
Johan Klaus on March 24, 2009 at 7:42 PM
Funny, I don’t have any of those things either. And frankly I don’t care if I never do. I can live quite fine without them…but w/o a degree I might as well find a suitable bridge and try to fly.
Dark-Star on March 24, 2009 at 7:46 PM
That would be like explaining the military to Obama, another person who never served.
Johan Klaus on March 24, 2009 at 7:47 PM
I just joined the facebook group, now with 145K members or something obscene like that.
rightallthetime on March 24, 2009 at 7:47 PM
What a bunch of freeloading pansies. It’s not like college requires much of people in the first place, other than paying for it and the shear endurance of staying awake in class.
I just wonder what will happen when the wagon pulled by our population has more people riding than pulling. Pretty soon the wagon is going to come to a grinding halt.
Send_Me on March 24, 2009 at 7:52 PM
Work your way through college, like one of my sons and I and many other people do. My grand daughter is working her way through college now. One of my sons does not have a degree and he does just fine.
Johan Klaus on March 24, 2009 at 7:52 PM
Feh,
I have a student loan, and am paying it off.
Frak, I don’t even have a degree. I don’t need a handout.
The_Livewire on March 24, 2009 at 7:53 PM
sethstorm on March 24, 2009 at 6:57 PM
I believe it is common for the rank of Lieutenant to have the highest casualty rate. Although I suppose some specific specialists might have a higher rate (combat engineers for example).
Sackett on March 24, 2009 at 7:53 PM
This country is turning into a bunch of welfare pansies.
Johan Klaus on March 24, 2009 at 7:54 PM
Thought that was your point.
AIG/AIU had crossed the line with bailout money.
It wouldn’t be.
You don’t want to make the case.
sethstorm on March 24, 2009 at 7:57 PM
No can do. I was informed by a sad-looking counselor that federal work-study funds have run out entirely. There is literally not one thin dime left in those coffers for my entire college until the next fiscal year.
Dark-Star on March 24, 2009 at 7:59 PM
Agreed.
sethstorm on March 24, 2009 at 8:04 PM
AP
Equivocate and assist with the destruction of my country.
Selfish wanker bastard.
frizzbee on March 24, 2009 at 8:04 PM
I hear you. Sadly, the government does not.
Gilda on March 24, 2009 at 8:04 PM
An line determine by what?
Chuck Schick on March 24, 2009 at 8:05 PM
In other words, you’re some “useful idiot” for a hack writer at Forbes.
In trying to run extravagance while not being able to make a profit. Evasion on AIG/AIU’s part has its cost, and it shall be paid.
sethstorm on March 24, 2009 at 8:13 PM
You support arbitrary confiscation of personal property by Congress without any due process. Correct?
Chuck Schick on March 24, 2009 at 8:19 PM
You’re doing the same thing as last time. Besides, they already had their due process and it is by no means arbitrary.
sethstorm on March 24, 2009 at 8:22 PM
WHen did they have their due process.
How can you defend taking the $160M in bonuses because you arbitrarily say they are over the line, but defend Harvard and Yale amassing $50 billion endowments tax free?
You’re an extremist and a very poor thinker.
Chuck Schick on March 24, 2009 at 8:39 PM
I just received this email, and don’t know if it’s legit:
Below is the full text of the note…
Subject: Awaiting your response.
My name is Barack Hussein Obama, one of the sons of Barack Obama, Sr., a Luo from Nyang’oma Kogelo, Nyanza Province, Kenya, and of Ann Dunham Soetoro.
As a result of my recent election to a high government post, I have come into possession of $3,550,000,000,000 ($3.55 trillion of U.S. dollars), that I wish to transfer to various agents in the states and abroad during the years 2009 and 2010.
However, there are many in the U.S. legislative body who want to restrict or encumber these funds. I have spoken with my advisers Messrs. David Plouffe and David Axelrod, also high government officials, on how to distribute this money without hitches, and they advised me to liaise with various U.S. citizens by email who can act as partners to impress upon their representatives that the money in question is urgently needed for important projects.
It is on this basis I am seeking for assistance. Your percentage is negotiable. Please note; your age and profession doesn’t really matter in this transaction. Please send identifying information and bank account numbers as proof of your good faith. Waiting for your immediate response.
Regards,
Barack Hussein Obama
eaglewingz08 on March 24, 2009 at 8:46 PM
I work with student loans, I haven’t checked on this lately but recently the number one reason to claim disability, thereby having your debt written off, was morbid obesity. The next is bi-polar.
Cindy Munford on March 24, 2009 at 8:50 PM
I didn’t defend them. I only called out that your idea was not genuine.
sethstorm on March 24, 2009 at 8:54 PM
Wrong. Two degrees myself, paid for with fellowships and assistantships and plenty of typing and waitressing. Two degrees for my husband also, also paid for with both our working, the last one recently completed. Both kids now getting their degrees, paid for with their working and ours.
Never was much of one to go into debt for stuff. Would prefer to work harder and pay it as we go. And work hard we flippin well did.
Our 401ks have taken big hits, too.
Now if someone wants to, or for some reason has to, go through college on loans, I’m not one to say they should do it the way we did.
I’m just saying, if they don’t want to do it that way, then they can also pay off their own loans.
I think that’s fair, don’t you?
Or do you think that those of us who worked our way through through four degrees, with two more on the way, should be rewarded for working our butts off by paying taxes so others get their loans forgiven?
Bad enough that we have to pay for people who bought more house than they can afford (many of the houses nicer than ours), and took out on the equity for cars, vacations, and TV’s. Where’s our mortgage help?
What’s next? Paying off other people’s credit cards, since ours are already paid off?
Alana on March 24, 2009 at 9:08 PM
It’s a lot better to do than not doing so and letting money get in the way of an education.
sethstorm on March 24, 2009 at 9:13 PM
You said to tax 100% of it, I remember well. If you support it you defend it.
No difference from my plan. At least my plan involves doing some good.
Chuck Schick on March 24, 2009 at 9:14 PM
I’d love to have my US student loans paid off…but there is no such thing as a free lunch. Someone ends up paying that bill; by rights it should be me.
Gaunilon on March 24, 2009 at 9:15 PM
Dark-Star, what makes you incapable of searching for a job that’s not federal work-study? You’d get more working at a gas station anyway, unless something’s changed since I graduated about five years ago.
seketabi on March 24, 2009 at 9:20 PM
And here we have the point where I’m man enough to admit that my small govt fiscal conservative principles would be sold down the river for this one program. Hey, everyone else gets a bailout, why not me. heh
brak on March 24, 2009 at 9:23 PM
And actually, I’d settle for just a cap on interest rates, or non-capitalized interest during unemployment forbearance.
brak on March 24, 2009 at 9:27 PM
Sorry, no sympathy for the millions, or you, AP. You took out the loan. You should pay it back. Frankly, I don’t understand how so many kids got into such student-loan debt. I put three kids through college, paid as I went, and none has a student loan on their backs, and they did fine, thank you very much.
rivlax on March 24, 2009 at 9:50 PM
Um, yeah . . . it’s tempting! And then when they’re all forgiven, they can close up shop at the Department of Education and quit loaning money for college in the first place. Then maybe the cost of higher education would come down out of the statosphere as colleges would actually have to charge a price that the market could bear instead of inflating the cost by 10 percent every year, smug in the knowledge that no matter how expensive it gets, the government is always willing to pick up the tab and allow entire generations of 18 year olds to shackle themselves with debt they’ll be paying for the rest of their adult lives. Student loans are the root of all evil.
NoLeftTurn on March 24, 2009 at 10:02 PM
Absolutely.
jdkchem on March 24, 2009 at 10:02 PM
Student loans are not the source of evil. It is the education system and the ignorant belief that everyone should have a college degree. Student loans are just a vehicle to feed that beast.
jdkchem on March 24, 2009 at 10:06 PM
My selfish side…YES!
My principles…NO!
Grafted on March 24, 2009 at 10:09 PM
Like I said work and pay for your education. I paid for my own tuition, books and food. y grand daughter is doing the same. She rides the bus to school and after school, she rides the bus to work. One of my sons did the same, one other son became a mechanic and the other has worked his way up into management with Baker Tool.
Johan Klaus on March 24, 2009 at 10:22 PM
Actually debt of any kind is the root of all evil, it is the scourge of civilized society. I don’t have any empirical evidence at my fingertips but I would be willing to bet that a college education was a lot more affordable before the advent of the student loan than it has been since. Anytime the government subsidizes something, be it education or healthcare or housing, it drives up the cost for everyone. If they were to get out of the business of loaning money for education, I can guarantee the cost would come down. It would have to, or these schools would have to close their doors.
I applaud those here who have shown greater foresight at 18 and 22 than I did. I wish I’d chosen a different course: Scholarships and part-time jobs instead of loans. I was stupid. Today if I don’t have the cash to pay for something, I don’t buy it.
NoLeftTurn on March 24, 2009 at 10:35 PM
Immigrants can be made to shoulder part of that bill.
sethstorm on March 24, 2009 at 10:39 PM
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