Roth: Canceling student debt doesn’t fix the problem
The US government is the largest predatory lender in the country and must get out of student lending
The government, particularly at the federal level, has morphed from a protector of individual rights to a bizarre game show. It is consistently giving away cash and prizes to a small group of people at the cost of the unwitting sponsors, the taxpayers. One of those giveaways that has resurfaced is the call to cancel student debt. While the costs of college have become enormous and in many cases exceed the value of what students receive in benefits, canceling debt for some or all graduates does not fix the problem.
The problem, not surprisingly, begins with the government itself. The federal government took over the majority of college lending under President Obama, and it has become the largest predatory lender in the country. It preys on teenagers and saddles them with tens of thousands of dollars in commitments that are not generally dischargeable in bankruptcy court (another government decision) for accreditations that often aren’t able to produce a commensurate return on investment (“ROI”).
/snip
Providing easy and available financing to young people, who have not been taught in our government-run schools how to evaluate ROI, increases the demand for college educations, driving up costs.
Any time you put a third party guarantor into the equation, costs go up. This has happened in health care, for example. Hubby needed an MRI for his back, and with the insurance paying for it, the cost was in the thousands. Out of pocket, he paid $420. Imagine the boards of colleges and universities sitting around their conference tables, cackling “the government will pay what we charge!” – so they increase tuition.
But there’s no such thing as a free lunch. And students are finding that out now.
Furthermore, there is no underwriting process for student loans. There aren’t more favorable terms for an A student pursuing an engineering degree with strong job prospects vs. a C student pursuing an underwater basket-weaving degree with fewer prospects.
This process of evaluating risk and pricing it appropriately is done for just about every other type of loan that one takes on for a reason. Also, built into every other underwriting process is typically the chance of full or partial default, which creates a mechanism for the allowance of bankruptcy.
Merit has no place in leftist ideology. Merit is outmoded. Racist. “Old fashioned”. But a system not based on merit is bound to fail. There are no incentives to produce, to excel, to be successful. No reason to be meritorious if merit is not rewarded. So why get a degree that would reward society and so get paid appropriately? There’s no merit in that, and if the government is going to guarantee your student loan, go study aardvarks in English Lit of the 13th century. Don’t bother with a degree in nursing, or engineering, or business. Not nearly as fun as aardvarks. Heck just saying the word “aardvark” is fun. Much more fun than learning how to design buildings that won’t fall down or something boring like that.
The government has completely upended this. Without underwriting and bankruptcy, young people are on the hook, allowing the colleges to continually increase their prices without themselves having any skin in the game or any recourse directed back at them.
This has caused the cost of college to skyrocket, far exceeding inflation or the potential increase in wages students might get for their degrees. One 2021 study showed that the cost of college had exceeded the rate of inflation by almost five times over the last 50 years.
So, how does the government picking some group of people to have their debts “forgiven” solve anything? It would unfairly shift the burden of the costs (via more national debt, inflation, etc.) from the person who took on the obligation and received the benefits from it to all taxpayers. Those who passed up college, went to a cheaper school, made sacrifices to pay down their college debts, or carry other types of debt burdens would be unfairly penalized by the government picking winners and losers.
But, it would buy votes. Our government was devised to be dependent upon a populace of thinking, if not well educated, citizens. We have lost that in a sea of wokeness and selfish short-sightedness.
Off to bed out here. You all have a great evening. Nite nite.
Well,… I kilt it! But that’s OK, I’m tarred and off to bed. 😉
#63 #64 We have a couple of Tuffed Titmouse that built a nest on top of my LED light, hanging over the tractor and they get really pi$$ed when I get the tractor out. They fly out in a close tree and bark at me and flit around so i guess that they want to draw attention away fro the… Read more »
Well, I had another busy day, I finished up the 100′ drain line that I’ve been working on since Monday but in fairness to me i worked on it about 4 hours Monday, 5 Tuesday, 4 Thursday and 6 today. I took Wednesday off to supervise the dirt delivery and the work on the pad for the Pole Barn. Today… Read more »
Here’s a pretty neat car race/show that not a lot of people know about. https://www.athensreview.com/news/unique-car-club-rolls-through-athens/article_8ac86892-c657-11ec-8186-f7ce63faa17f.html
#63 – That’s a pretty neat high point.
Just now getting caught up on The Couch. I guess the high point of my day occurred while spending a few minutes with some clippers taking off shaggy new growth on the front yard ligustrums. As I moved along to the next bush, I was startled by a female cardinal flying out of the shrub about 6′ up from the… Read more »
Texpat
Surenuf.
Long day…tough week…aggravating physical things…thanks for covering the Weekend, Squawk. I’m tired tonight.
wagonburner
My heart sank when I saw the broken glass. BSue says my O WAIT!! moment was pretty funny.
The military is concerned over dropping recruiting levels. Gee, ya’ think the wokeness training could be part of this? An adminisration/president who doesn’t support them or their missions (unless it makes them/him look good)? Or maybe trying to talk to teenagers who have been told by society that authoritarian groups like police, etc., are evil. That may be why the… Read more »
That’s what those (relatively) cheap filters are for.
Also less wear and tear on the lens coating when you clean it ( which you don’t have to because there’s no way for crap to get in there).
Whoohoo that was rather fortuitous. Broke a sacrificial lens filter rather than the front glass element of a very expensive lens.
Shannon
#54
Yeah that was kinda my point. American gets killed fighting alongside the UKREs …. oopsie we need to warn US citizens to stay away.
Voters, Including Parents and Latinos, More Likely to Choose Republicans than Democrats in Midterms: NPR/PBS News Hour/Marist Poll
I’d just be real careful about giving canning advice of any sort. I only share the exact steps of how to do it, as per the manual and official FDA instructions. She had the same canner that I have, so I was quite familiar with each step. I would never suggest anything questionable. As I said, canning is easy, but… Read more »
52 SQK
That horse left the barn a couple months ago.
Glad to hear our crack State Department pukes are on top of things.
It is official from the state department.
Americans should stay out of Ukraine.
I’d just be real careful about giving canning advice of any sort.
Over on the canning page, a newbie was asking a question, as she thought she wasn’t doing it right. I detailed the instructions she should follow, and shared where I tended to miss or mix up tasks when I started. Then two women jumped in and said I was telling her wrong, that the canner should steam for ten minutes,… Read more »
47
Fay is the same.
She fit right in in Libya and Venezuela.
Looks like a high yella black chick in the photos.
Farming and ranching guaranteed to cure you of your gross-out ills.
I told Hubby that I was really feeling the sun out there today, and I think I’m developing the tan that made him think I was Mexican when he first met me. I was in my third year of marching band when we met. I have my father’s olive, Sicilian skin, which tans deeply. Even though we met in February,… Read more »
Cool graph.
#44
I was as well, the graph below it explains most people no matter the age get alone time each day.
I’ve had a busy morning. After morning coffee and greeting all y’all, I went outside to herbicide poison ivy on the property. That took a while. I had to search the perimeter, ditch, between the houses, etc. (Found out later that I missed some along the west fence line – next time.) I noticed some damage on my uncovered radishes/kale/cucumber… Read more »
The graph was cool, but I was puzzled by the near constant “alone” column.
Time we spend alone?
I expected the “spouse” to drop to near zero there towards the end, but surprisingly, no.
#40 – Pretty darned cool Brother!
(I’ve never seen such either)
Tactical leggings.
Wow, I was just tracking the delivery status of my dual fuel generator which I ordered earlier, and the price has increased by $200. I had heard that Amazon was increasing prices to get in line with increased delivery and other inflationary pressures on April 28, but that’s a full 50% price increase from the $400 I paid. Look out,… Read more »
Posting only because I’ve never seen a living, breathing bar graph before.
🙂
#37 – I’ll SEE your Anna
and RAISE you an Alana!
https://www.youtube.com/watch?v=fg2BS7H_dAU
Here’s Ammo Grrrll https://www.powerlineblog.com/archives/2022/04/thoughts-from-the-ammo-line-425.php
Anna Carmela is today’s bass honey
Been busy this morning. My wheelbarrow had a flat, but I knew that I have a spare tire, so I located it, but guess what – it’s flat too. So I had ordered a couple of tubes from Almondzon, and they arrived this morning. After wrestling with the tires using screwdrivers since I don’t have any tire changing tools, I… Read more »
https://youtu.be/p14mc2TUPGI
The Creature from the Kenyan Lagoon’s Wooden Dummy regime installs a ministry of truth dept that will actually be all lies.
Goebbels disciples Inc.
MonkeyWerx MilSpec Ops
And we are about to go to war?
Defense contractors expected to struggle to meet weapons demand
U.S. Missiles Sent to Ukraine Aren’t Easily Replaced, Panel Tells Senate
As Raytheon struggles to replenish Stinger missiles, lawmaker pushes Defense Production Act
30 Bonecrusher
Excellent points. Also, what are they going to do in the EV industry with millions of worn out toxic used batteries ?
WALLER — In a smaller, rural area outside of the Houston metropolis, Waller parents have found that their school district isn’t a “conservative stronghold” like they thought. Josh Posey, a Waller ISD father, confronted the school board last fall with evidence of sexually explicit materials in school library books. However, the books were only the beginning; Posey and other parents have hit… Read more »
Still think that battery powered cars are the wave of the future? The National Post conducted an informal survey of Western Canadian Nissan dealerships to ask the cost of replacing a battery pack on a 2013 Nissan Leaf. Estimates ranged from $8,000 to an eye-watering $30,953.28 plus $1,200 in labour. Virtually every dealer contacted said they had never once performed… Read more »
This week, thousands of taxpayer-funded K-12 school librarians across the state gathered in Fort Worth at a conference that celebrated hazardous sexual behaviors and defended offering sexually explicit books to students. The Texas Library Association’s annual conference this week hosted a variety of eyebrow-raising activities, with featured speakers such as Dr. Ibram X. Kendi (an apologist for the hotly contentious… Read more »
WASHED UP KISS GUITARIST DECRIES MUSK TWITTER TAKEOVER, BELIEVES MONEY WOULD BE BETTER SPENT ON WORLD HUNGER AND CURING CANCER Dr. phil Good will be disappointed in Stanley. Cmon Paul. Get your schitz together. Just think that cancer and world hunger could’ve already been eradicated had our blood money sucking Vampyres in congress not had such a decades long insatiable… Read more »
25 wagonburner
No, no, no…economics is white supremacist propaganda. Mathematics was a plot by dead white men to kidnap African slaves and sell them to gullible farmers.
Happy 89th Birthday, Willie.
17 texpat
I guess those idiots don’t realize that the $44B didn’t just vanish. It was/will be transferred to the stockholders of Twitter.
Maybe he could prevail upon them to cough up some of their newly acquired windfall?
I saw somewhere someone made a great point. Obama and most democrats were against gay marriage not that long ago, now they’re teaching kindergarteners about sex change.
Im probably biased but I would submit the Republican Party moved left as well.
#19
Washington Post fact checks a cartoon.
https://mobile.twitter.com/washingtonpost/status/1519806103210668034
Morning gang. Been up stirring about since early, but just now getting to sit down. The real problem is that I’ve really got nothing to show for my efforts either. But that’s OK too. Medium overcast out here this morning, comfortable temps, but the SE winds have returned 30+mph. Still need rain. Hoping that you all have a great day. … Read more »
Morning, gang.
I’m betting these people had quite a bit to do with this World Health Organization under the radar treaty business. A secretive group backed by millions of dollars from liberal billionaire George Soros is working behind the scenes with President Biden’s administration to shape policy, documents reviewed by Fox News show. Governing for Impact (GFI), the veiled group, boasts in internal memos of implementing… Read more »