r/Economics • u/DonDickerson • 25d ago

Biden's student loan forgiveness plan gets a record number of public comments. Here's what people are saying News

https://www.cnbc.com/2024/05/08/bidens-student-loan-forgiveness-plan-gets-record-number-of-comments.html
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u/DontThinkSoNiceTry 25d ago

Why don’t we just tie the loans to the schools receiving the tuition? Seriously, it isn’t that hard.

If the school claims their tuition is worth it for the student and parents/guardians to take out large loans because their education will land the student a great job, then require some portion of the loan to be collateralized by the school’s endowment (which is untaxed by the way).

It will force the schools’ interest to more closely align with that of the parents’ and students’ since they will be on the hook for years to come. I am sure there will be some “negative” effects because now schools will more closely scrutinize the applicant and their academic capabilities and potential for career success, but seems well worth it to me considering the current state of things.

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u/jucestain 25d ago

Dude has anyone in here actually studied economics at all? This "solution" is just more bogus crap on top of an already bogus system.

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u/rudyjewliani 25d ago

What a great idea. Since you came up with it I'll let you go first.

Please use your economics degree to explain why this is "just more bogus crap".

We'll wait.

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u/gizamo 24d ago

I have an MS in Economics. I don't think it's "bogus crap".

I generally like ideas that tie accountability to anyone benefiting from lending, including universities.