I am a Democrat who disagrees with President Biden’s plan to forgive billions of dollars of student loan debt. A different plan is needed.
Forgiving student loan debt under the Biden plan is a slap in the face to those who did repay their student loans. Also, it would enrich colleges whose counselors deliberately misled students about the economic value of the degrees sought by those who could not repay.
Here is an alternative debt forgiveness plan. The colleges that benefited from misleading the students who took the loans, the banks that originated the loans, and the banks or financial groups that bought the loans before they were given to the federal government to collect through the I.R.S. and others, should each pay 25% of the loan, the interest, and any additional fees or charges. The students should pay 25% of the original loans but have the interest and fees forgiven.
As students, the colleges, banks, and financial groups that profited from the student loan programs were working together to take advantage of students with little or no knowledge or experience to enter into such agreements with “eyes wide open”. But to saddle the taxpayers with a complete “bailout” is making the taxpayers the new “debt slaves” of the colleges, banks, financial groups, and now the federal government through tax paid bailouts for those who caused the problems in the first place.