Tuesday, January 14, 2020
Senator Bernie Sanders on Monday proposed canceling all $1.6 trillion of outstanding student loan debt in the United States, one-upping a rival for the Democratic presidential nomination, Senator Elizabeth Warren, who has proposed canceling $640 billion of the debt. But there is a potential problem with the Sanders plan, and, to a lesser extent, the Warren plan. Their solutions for the past and plans for the future don't line up.
FTA: " it's clear that the majority of all student loans are taken out to attend private colleges or graduate school.
This means that the day after Senator Sanders "hits the reset button," as he put it in the news conference, the national student debt odometer would begin rapidly spinning again.
Will those later debts be forgiven, too? If not, the plan would create a generation of student loan lottery winners, with losers on either side. People who had already paid back their loans would get nothing. People with future loans would get nothing. People with debt on the day the legislation was enacted would be rewarded."
As always the devil is in the details, but creating a bunch of lottery winners doesn't sound equitable and only treats the symptoms of the high cost of education.
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