The federal government kicked private lenders out of the student loan business a couple years ago. If student loans are to be forgiven, it would be purely at the expense of the taxpayer. Forgiving student loan debt would simply be another way of encouraging young people to go to college who otherwise should not. It would add to the welfare/dependent on the government mentality and to the real numbers. Who will be left to pay taxes in the future?
For those who use student loan debt wisely, the outcome can be very good. They can potentially get into a career otherwise unavailable to them, and the earnings are generally better. I am thinking for positions such as health care fields, engineering, education, for example. If the students are also careful to select colleges and universities based more on costs than “status”, use junior college and state schools when appropriate, work some hours while in school, live at home if necessary, the student loans can be kept in check and be reasonable for repayment after graduation.
Reminds me of the housing debacle:a government-created circular firing squad.
Obama Breaks Down Student Loan Overhaul
He will also talk about the provision’s less controversial expansion of Pell Grants, as well as supporting historically black and minority institutions and caps on student loan repayments.
According to the White House, “New borrowers who assume loans after July 1, 2014, will be able to cap their student loan repayments at 10 percent of their discretionary income and, if they keep up with their payments over time, will have the balance forgiven after 20 years.”
http://whitehouse.blogs.foxnews.com/2010/03/30/obama-breaks-down-student-loan-overhaul/
So basically, you need to make sure you buy or rent a living space expensive enough to maximize your non-discretionary spending, so you make the absolute minimum student loan payments for 20 years. Then the debt disappears!
Or more acurately, your debt gets paid by other Americans, which is “free money”!
Those of us who pay off our loans and debts sure look like chumps.
“These investments complement President Obama’s broader agenda for higher education and will help us reach his goal of America having the highest proportion of college graduates in the world by 2020.”
http://www.whitehouse.gov/sites/default/files/10326-higher-ed.pdf
(no mention given to QUALITY)
“Public service workers such as teachers, nurses, and those in military service will see any remaining debt forgiven after just 10 years.”