Posted on 10/13/2019 4:23:09 PM PDT by Sir Napsalot
The Narrative
“[My plan] forgives all student debt and ends the absurdity of sentencing an entire generation to a lifetime of debt for the ‘crime’ of getting a college education.”[1] — Bernie Sanders“The result [of rising college costs] is a huge student loan debt burden that’s crushing millions of families and acting as an anchor on our economy.”[2] — Elizabeth Warren
Reality
Sixty-six percent of millennials have no student debt at all.[3] That’s because they haven’t gone to college or because they managed to get through without having to borrow. Those who do have debt tend to have modest burdens relative to their income. Typical four-year-degree graduates who borrow will accumulate $28,500 in debt over the course of their enrollment.[4] That can be paid back with monthly payments of less than $200,[5] which is a relatively small share (4%) of the average monthly earnings for this population ($4,717).[6]
Borrowers who do find their loan payments unaffordable because of low earnings are eligible to make reduced payments without any penalty and to have truly unaffordable balances forgiven. Existing loan repayment safety-net programs cap monthly loan payments at 15% of discretionary income, regardless of how much they’ve borrowed, and borrowers will have any remaining balances forgiven after 20 years (or 10 years for the approximately one-quarter of the workforce employed in the nonprofit sector or in government).[7]
(Excerpt) Read more at manhattan-institute.org ...
This is another Leftists generated "crisis", near and dear to their hearts, re: Higher Ed.
When there is no actual crisis, generating alarming headlines 24/7 is just as good as "actual fact". Unless, of course, you really dive into the details of the so-called crisis.
Sorry, I should have specified that this is an article from the Manhattan Institute, and hat tip from Mark Tapscott at Instapundit.
The people advocating this are doing so because most of the debtor students who have dificulty paying it back are women. Its an extension of welfare and securing the female vote.
Who knew a degree in Queer Perspectives on Hegemonic Cinema Patriarchy wouldn’t pay?
Or that Starbucks wouldn’t give such a degree holder $100,000 a year salary?
My number 1 millennial has student debt paid off. Number 2 millennial has plans to pay off her student debt by November 2020. Repayment for #2 was going slowly before the current administration.
Great article. I’m not a Millennial, but my law school debt was in the six figures. It went up during the few lean years after I graduated due to recapitalized interest. But I worked hard and lived within my means, and paid it off early.
A STEM degree doesn’t pay either. American companies would rather import planeloads of H1B Indians and Communist Chinese to take work from Americans.
My GD has no debt and is making 120K. She had scholarships and worked except through her last year of graduate school and her parents helped her out too.
She’s living w/her parents and saving most of it to buy a house.
My son went to school in another city, rented an apartment, worked a full-time job, and paid his way through graduation. He didn’t take a dime from his mother and I and nothing from the government. I suspect too many students, ignorant of economics to begin with, have some hazy notion that student loan debt will somehow resolve itself. They opt for classes, parties, and free-loading and then are surprised to find they need to pay for the trip.
It would pay if they had minored in left-handed puppetry - that makes all the difference in the world!
Democrats and Millenials live in a post-reality environment.
Facts will not sway them.
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