Why Student-Loan Forgiveness Comes With Economic and Political Risks | WSJ

Isn't college price inflation the problem? College hasn't always been super expensive

The entire system needs to be overhauled. Ever since the existence of student loans, it's just given colleges more of a reason to increase the price. Income Share Agreements are becoming more popular.

It’s a principle agent problem, simple as that. The universities have no incentive to keep prices down because of the loans, the people giving out the loans always get their money back and young people are told college is the only path to the middle class. Nobody has the interests aligned.

Before debt cancellation, what really needs to happen is the government needs to heavily regulate universities by putting a cap on tuition (the public universities at least; not much can be done with those who decide to go to private universities). Furthermore, they need to punish predatory loan companies that charge extremely high interest rates for students and promote income based repayment plans more. Finally, there needs to be some mandatory elective high schoolers should have to take so that they are well aware of what they are signing up for should they decide to attend university and sadly that should include statistics on the majors and degrees that will be able to pay off those loans. Cancelling student loan debt is just putting a band aid on a gunshot wound; until we remedy the root of the problem, nothing will change. As much as I want student debt cancelled even though I have none myself, I would not hold my breath on it happening anytime soon.

The govt had no problem forgiving 90% of the $800 Billion PPE loans. $600 Billion of which, has never reached the intended people(the workers) but has been slipped into the pockets of owners 🙄

Tuiton is so high in the first place because institutions saw the introduction of student loans as an excuse to endlessly raise fees!

I don't have a problem with paying back every penny I borrowed. It's the interest that is killing borrowers. I'm paying interest on interest. Cancel interest or make it 1% and that solves the problem for so many.

Remember, there are economic risks to student loan forgiveness, but we'll disregard the economic risks when it comes to bailing out big corporations. America the Great!

Graduate high school and put on your resume that you went to college. I did it and they never checked.

How about just make college affordable for future generations…

Speculation: Student loans will NEVER get canceled and college tuition will CONTINUE to rise.

Starting early is the best way of getting ahead to build wealth, investing remains a priority. I learnt from my last year's experience, i am able to build a suitable life because I invested early ahead this time. I pray that anyone who reads this will be successful in life, 🙏🙏🙏

The problem is there is no demand for these students once they graduate to be able to pay off these debts. Like I never required student debt and I paid 100 thousands to a school that was supposed to help me get a job. Frankly I believe school's should be incentivized get their students jobs.

Applying bandaids when the whole system needs an overhaul

No political risks with shoveling credits to billionaires, but forgiving $10,000 in debt to students is risky? Wow.

Universities hike up tuition costs cause they can get away with it. The tuition for the school I went to went up by six grand from when I was a freshman to when I graduated and they still kept increasing it even after I left. And where did this money go? Well not to the students, every year people talked about how their programs were getting cut.

As someone who is fresh out of college, I definitely regret taking out loans and my degree isn't doing me ANY favors. The fact that 18 year olds are given predatory loans before they can even buy a bottle of wine is just sick

Thank you for explaining this in a non partisan way. Tired of all these partisan reporting blaming the left and right.

Honestly the government needs to regulate colleges (and all higher education). The amount they charge is insanely high. Including the books etc etc

The decision has long since been made. The final cancellation amount for federal student loans is $0