Student bailout and college loan complex
March 25, 2022 1:08 p.m. ET
Two conclusions from the student loan fiasco are clear (“The Great Pandemic Student-Loan Scam,” Review & Outlook, March 19). First, there are a huge number of college degrees that are not worth the price. Wake up, parents and students. Second, the federal government is an extremely incompetent moneylender. Wake up, taxpayers.
A less obvious conclusion is that the influx of federal money into these institutions via loans has caused unprecedented inflation in college education and made it unaffordable for most. This has led the government to control these institutions, since it is the de facto financier.
Now there is a push to forgive student loans. How is that fair? If we cancel student debt to the government, we should cancel all personal debt to the federal government. Why should the university graduate be treated better than everyone else?
My wife and I are beneficiaries of what your editorial calls “the great pandemic student loan scam.” At the beginning of March, we made a successful offer for our first house. Although we’re both federal workers, between the debt burden of our (public school) degrees and the overheated housing market, there’s no way we could have put together a down payment without freezing student loan payments. At a time when the wealth gap between generations is wider than it has ever been, debt relief has been a boon for millennials like us looking for a piece of the American dream. .
Does Senator Elizabeth Warren realize that she has offended millions of Americans, myself included, who come from families who couldn’t write a check for college but who went anyway, contracted student loans and paid them back for many years, sacrificing and delaying purchases? Many of us then sent our children to college with student loans which they then repaid.
John M. Nowicki
River Forest, Illinois.
Since the wealthy should “pay their fair share,” here’s an idea for Senator Patty Murray and her colleagues. Rather than asking taxpayers to foot the bill for those luckier than them, there is another source of money we can use to pay off student loan debt. Based on fiscal year 2020 numbers, the top 10 universities by endowment represent approximately $210 billion.
These schools have benefited greatly from the student loan industry. How about an agreement between the schools and the government to create a fund to use some of this money to reduce student debt?
West Hartford, Conn.
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