Man! That Biden ,he is just a good guy and feels for the common man doesn’t he ???? He is the best president since Barack Obama!!!, the closest we can get to a third Obama term. He has forgiven student loans up to $10,000. If your loans are only up to $10,000 then you are completely in debt FREE!!!!. WHAT AN HONORABLE GESTURE!!!!! it will cost $300 billion while we have $1.6 trillion in student loan debt.
Hmmmmmm not so fast, there are many moving parts to this. First and foremost, we are not asking how long this loan forgiveness is for?, is it for new borrowers???. If we are honest with ourselves we should be asking how we even got here in the first place and what we can do to solve and prevent future generations from suffering a similar fate.
The economy is an interesting one, there are good sides to it like any economy, before we understand what is going on we need to consider history. To start with, the loan industry is made up of bubbles, and as time goes on bubbles do burst.
Once upon a time, you could pay for college with a part-time job, college wasn’t that expensive and with a little discipline, that dream could be achieved. This started a long time ago. Well, some say it was during Ronald Reagan’s era others say it was earlier than that, as far back as world war 2, but all of the politicians from the 50s have contributed to high college tuition costs. This was all due to Certain policies that were put in place even Barack Obama put in a few policies of his own a few years ago. This all started with the best of intentions I must say, well Russia had just launched something into space, and there was competition, America needed to educate its population, This was in the time of Dwight Eisenhower, So in order to have a more educated population than the Russians, in order to beat them at the space race, the National Defense Education Act was enacted in 1958 and that was the beginning of all this. As time went on there was the Higher Education Act of 1965 which freed up more money for higher education. By 1970 more people went to college than ever before, but like I said before it was the beginning of all this student loan madness that we have today. The long and short of it is once the college loan industry was in full swing tuition costs rose up because of course anyone can borrow the money and go to school, so colleges say hey even if we charge more anyone can borrow the money, that is what loans are for ….. because of this and other sources of revenue colleges have large endowments funds which are managed by hedge funds managers. interesting . Now for time purposes, i will summarize a few things about how we got here. Most people don’t remember 4 presidents ago so ill start with Obama, According to Mr. Obama, he didn’t want to stand with the banks so he cut out the banks allowing the department of education to become the largest creditor/Bank then outsourcing most of the work to private companies. Wow who could have seen this disaster coming huh???
Well so this is a brief history of how we got into this mess, so if this systemic structure is not fixed, well the loan forgiveness would mean a bandaid on a problem that goes deeper than a mere blister. This may surprise a few people but we have 9 presidents who never went to college,
George Washington,
Andrew Jackson,
Martin Van Buren,
Zachary Taylor,
Millard Fillmore,
Abraham Lincoln,
Andrew Johnson,
Grover Cleveland,
Harry Truman.
Also some of these schools have large endowment funds, so I would say the schools can make more scholarships to students can’t they? $300 billion will come from taxpayers…. while their endowment funds are intact, Harvard alone has over $50 billion dollars in assets….. and it is under management, like a hedge fund …. Interesting!!!!!
