Student loan forgiveness transfers costs to taxpayers
The story we always hear is that university graduates are suffering from the terrible burden of their student loans and therefore the great political pressure to bail them out generously.
In fact, relatively few graduates have the heavy debt burden we hear about. For the most part, debts are quite manageable, especially if your credentials have given you access to a lucrative profession. Releasing these people from their student loan debts transfers the cost of successful professionals to taxpayers.
This is the point that Richard Vedder, Thomas Lindsay and Andrew Gillen make in this piece Posted in The hill.
The authors write: “Progressives often present themselves as fighting the attempts of the rich and powerful to hijack public policy to enrich themselves at the expense of taxpayers. So why, in the name of the struggle for the oppressed, are they trying to send six figure checks to well paid dentists, doctors and lawyers? While there are certainly dentists, doctors, and lawyers struggling with debt, many more are generously compensated and can afford to pay off their loans.
Vedder, Lindsay and Gillen point out that there are existing policies that can help students who are over-indebted; there is no case for the kind of sweeping loan forgiveness many Democrats are talking about.
It was a colossal blunder for the federal government to embark on funding post-secondary education, and the costs of this blunder keep rising. The more taxpayers pay for college and graduate student education expenses, the more wasteful the whole system becomes.