Steve Levy: Forgiving students loans is bad policy – but if it happens, demand that colleges do this
November 30, 2020
A forgiveness program without reforming the entire system will be a failure
As Joe Biden convenes his transition team, one of the top priorities on his to-do list is some type of student loan forgiveness, which was promised on the campaign trail.
Put aside for the moment how unfair this policy is to those who have already paid off their student loans or worked their tails off to avoid taking loans in the first place.
Or the fact that those who did not go to college and earn less, will be subsidizing those who did attend and are earning more.
Or how it is going to be paid for.
The big question is whether any action from Biden will tackle the underlying cause of college tuition having skyrocketed uncontrollably over the last several decades. A forgiveness program without reforming the entire system will be a failure.
That is why any college loan legislation must include a provision that requires colleges to cap their tuition if they seek to continue to exploit protections afforded to them by the federal government’s backing of the loans.
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