Reply to Canceling $10k of student loan debt is stupid.

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Reply to "Canceling $10k of student loan debt is stupid."

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I still think people often miss the other view point. Colleges shouldn't be allowed to charge whatever they want. Most of the universities are so top heavy that they continue to raise fees in addition of having Billions of $s in endowment. Add the high overhead they charge on all the research funding and it doesn't look like a non-profit business anymore. [/quote]

Colleges charge whatever they want BECAUSE OF THE DAMN GOVT.  How do people not get this through their damn thick skulls?  Govt caused the problem in the first place, now the solution is more govt?

Colleges could have never started raising tuition to whatever they want if access to credit by students were a lot more difficult. For years the federal govt backstopped student loans, so if the borrower defaulted, lender still got paid. The university already got theirs too.  As always, the road to hell is paved with good intentions. Liberals demanded we have college access for all, and what the ended up creating was the monstrousity of a debt trap we have today for students.  The constant pumping of liquidity into the credit market for student loans and the removal of risk, all courtesy of the govt, is the reason why tuitions have exploded.  Colleges can raise to whatever they want because they know students can always get a loan. Lenders keep handing out loans because they know they'll always get their money back. Where's the risk?

Break the chain of easy credit and all of it implodes and free market economics takes over where prices will settle down only to what people can afford and what lenders will hand out.  Get rid of all of the govt intervention in the market they caused the problem in the first place.[/quote]

+1 This is the EXACT same dynamic underlying the 2008 financial crisis. They wanted to make it easier for people to own homes, so the government entities backed the mortgage loans of sub-prime borrowers. Sure, there was also a lot of other illegal activity going on, and the banks should have been punished for them. Some did get "punished". My favorite bank Wachovia was one such sacrificial lamb.

The government can and should encourage certain types of behavior, but distorting market efficiencies with regards to buy/sell decisions is not the right way to go.[/quote]

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