Re: Student Loan Forgivenes
s Act of 2012
07-26-2012 09:52 AM
The harsh reality about student loans is that those payments are delaying young people marrying, starting families, establishing their own households, buying homes, etc., and all of those things are huge drivers of economic growth. We're already seeing declines in the type of purchasing caused by those activities, and it's having a negative impact on our economy. Doing something to solve that, even if it "bails out" some unworthy over-borrowers is good for the whole nation in the long-run.
BUT (and this is a big BUT), we also need to realize that this situation was created by a variety of factors and address them at the same time. Some people went to schoosl they couldn't afford for no good reason. Some people went to a 4-year school because they were told they had to, and really they needed a technical degree or aprrenticeship program to equip them for a good career. Schools have driven up tuition faster than anyone's savings could keep up, and the schools themselves need to retool and consider the return on investment they provide for their students.
This bill is a good start,and will do good things for everyone, but the impact will only be lasting if it's paired with efforts to keep borrowing reasonable, steer people toward affordable and appropriate programs, and have universities retool their programs to fit the modern economy and changing student needs. There will always be a place for brick & mortar 4-year degrees, but we need other options too, and young people need to know about them so they can make good choices.