I graduated from state university in 1977 with a student loan debt of slightly less than $500. Of course, that was when we all agreed that it was useful, even imperative, for members of an advanced, civilized society to have easy access to higher education.
That was before we decided to chuck all that and just let predatory Wall Street banks make a lifelong meal out of American students.
So why does the Washington Post Editorial Board choose to IGNORE that last point? I think you know.
The Post whines about Biden's student debt relief. You know what really takes money from that "broad tax base" that the Washington Post Editorial Board has suddenly discovered? The military-industrial complex squandering $1.7 trillion on some lame fighter jet.
Student debt relief, on the other hand, provides a cascade of social benefits both immediate and long-term. Do you think any of those people who didn’t go to college sell goods and services that those whose debt has been eased will now, for the first time, be able to AFFORD?
I presume, btw, that the Editorial Board includes a walrus and a carpenter.
"Decades ago, the federal government relinquished direct control of the student loan program, opening its bank to corporations concerned with profits, not diplomas. Private equity companies and Wall Street banks seized on the flow of federal loan dollars by peddling loans that students sometimes could not afford and then collecting fees from the government to hound those students when they defaulted.
ReplyDelete"Once in place, the privatized student loan industry has succeeded largely in preserving its status in Washington. Student loans are virtually the only consumer debt that cannot be discharged in bankruptcy except in the rarest of cases – one of the industry’s greatest lobbying triumphs.
"At the same time, societal changes conspired to drive up the basic need for these loans: Middle-class incomes stagnated, college costs soared and states retreated from their historical investment in public universities.
"If states had continued to support public higher education at the rate they had in 1980, they would have invested at least an additional $500 billion in their university systems, according to an analysis by Reveal from The Center for Investigative Reporting."
Given the unaudited trillions already being flushed down the Pentagon toilet, this will not noticeably increase anyone's tax burden.
ReplyDeleteOn the other hand, Biden's student debt relief plan will be a serious and ongoing economic stimulus for ordinary Americans.
Rita from California said:
ReplyDeleteOne of the worst WaPo editorials. (And there are many to choose from.)
“It takes dollars from the broader tax base, mostly made up of workers who did not go to college…”. How is the broader tax base defined? By number of taxpayers or amount of overall tax paid?
More importantly this kind of argument could be made against tax breaks for any group. The PPP loan forgiveness program benefitted “small” business owners. It took dollars from the broader tax base, mostly made up of people who didn’t own small businesses. The steel industry tax breaks took dollars from the broader tax base, mostly made up of people who didn’t own steel businesses.
These students have been gouged by high education costs. They shouldn’t need loans to go to college. Address that problem.
Funny that I don't seem to recall the Washington Post Editorial Board complaining about the super-massive, super-regressive mistake of gigantic tax cuts to huge corporations.
ReplyDeleteEducated people represent a major benefit to any civilized society, and the more, the better. They should not be forced to be enslaved to Wall Street banks in order to PROVIDE that benefit.
ReplyDeleteBK2015 said: "Student loan debt prevents people from getting homes, getting cars, getting credit cards, getting bank accounts, starting new businesses and can even be used in background checks to prevent you from getting a job. College tuition is a racket and the ROI is declining as too many get out and can only find jobs with a $30,000 a year with no benefits.
ReplyDelete"Wanna be angry at someone? How about all the tax cheats and people who practice capitalistic socialism?"
Paul Loop said:
ReplyDeleteDuring a physical therapy session recently I listened to the young PTs talking to each other -- no prompt from me -- about how much they were enjoying their vacation from paying off their student loan debt and how they were able to actually DO things with the money that wasn't being garnished from their pay.
One of them was pointedly grateful knowing that when he had to resume paying some day he wasn't going to be socked with interest penalties, another feature of the pandemic-induced relief. I would imagine waving goodbye to $10,000 of that debt is going to make them very happy. Maybe even happy enough to vote.