Having younger children myself, I am always looking to their future, this student debt forgiveness concerns me. Over the last 40 years tuition to Public Universities has sky rocketed about 2,500% from $394 in 1970 to $10,500 in 2020 per semester. When compared to inflation $394 in tuition would cost about $2,600 today or about 550% increase, a far cry from the 2,500% we currently see.
This begs the question, what happened? In 1965 the US Federal Government created a program called the Federal Family Education Loan (FFEL). This program has completely distorted supply and demand for higher education, it’s simple economics. We are seeing wide spread inflation today because of stimulus pumped into the economy by governments across the Globe. Federally backed student loans has done the same thing but concentrated in the Universities.
Now Biden wants to forgive student loans on a massive scale. This has never been thought of as a possibility in the minds of borrowers, however, it is now. This will change the behavior of students who are receiving these loans, they will take out more than they other wise would have and they will forgo working through college to save on tuition as much as possible. This is going breed entitled, lazy, and still uneducated individuals all while continuing to have above inflation increases in tuition. Liberals know this, they also know that these borrowers who took out the maximum amount they could are future voters……..wanting some forgiveness from daddy gov will easily hand liberals their vote.
Trade school seems like a possible answer, this is something the liberals can’t hold over us (except by taxing us). We earn our keep by learning a trade and being useful to society, producing not consuming. We are meant to be in service of one another, sharing our strengths and talents with the community while being paid to do so. This stops working when freeloaders take advantage of our goodwill and work ethic. Today, Biden just forced us to support these freeloaders even more.
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