Wednesday, May 16, 2012

Student loan forgiveness? Of course not.

About that “crushing” student loan debt liberals want to unload on taxpayers: government is the problem and government cannot be the solution.
Why do more college graduates each year find themselves with tens of thousands in student loans but without skills the market wants to employ?  The answer is simple: government interference in the free market.
Consider what the lending situation would look like without government guaranteed student loans. What lender would have provided tens and hundreds of thousands of dollars a young man or woman who wanted to pursue a bachelor’s degree in history or journalism or anthropology or film studies? A prospective student seeking a loan would need to provide the same thing a prospective business entrepreneur would have to provide: a realistic business plan.
So what has guaranteed student loans done for the young person? Allowed him to completely waste the four years of his life when his capacity for learning is at its peak.  And then saddled the student with the so-called crushing debt his mistake has cost him.  He didn’t get the wise counsel of a lender who had skin in the game.  No, the young man or woman learned the glowing benefits of his major from the very academic whose own salary depends on the guaranteed loans for food and shelter.
Will student loan forgiveness solve the problem?  Of course not.  Forgiveness would send a terrible message to the student and to future students – that taxpayers will bail out your mistakes. Student loan forgiveness just kicks the can down the road.
Government interference caused the student loan “crisis”.  The only solution is to allow the free market to function.


  1. John, I'm glad to see you've started a blog of your own.

  2. Hi Jet, looking forward to reading this neat new blog.