The only possible legitimate reason for the federal government to forgive $10K per outstanding student loan is because the government is guilty of being complicit in the runaway costs of higher ed.
The Feds guaranteed the loans and then turned a blind eye when schools abused the low-eligibility money. If that sounds familiar, think about what started the Great Recession in the first decade of this millennium.
The total cost to our national debt for a one-time partial school loan forgiveness, best guess, would be $500 billion ― a third of the $1.6 trillion student debt that they/we are holding.
For obvious reasons, well-handled government loans are a good idea, such as FHA loans, but because there is no collateral for student loans ― only a person’s signature promise ― the government must have a strict oversight process in place toward borrowers and receivers.
The latest government giveaways not well-handled: A mere $100 billion in pandemic relief funds stolen. Then, an estimate of $76 billion was lost to fraud from the Paycheck Protection Program. The government is a stupid sieve.
I have zero faith that meaningful oversight will ever happen until this country is demonstratively crippled and we have a replay of the Great Depression, but worse because more regular folks will have further to fall. The finger-pointing will be entertaining. The newly added IRS group should investigate our government.
Pat Sullivan, Jackson Township