“The time for half-measures is over,” the Democratic presidential candidate said.
As currently someone who is still paying off student debts. I obviously find this proposal interesting and amazing. But a lot of key questions are raised. 1.) Who will pay for it obviously. 2.) For the millions of students who have already paid their debts, what would be done for them? I am sure plenty of more questions will arise as well. So in theory it sounds like a great proposition. But still needs further clarification or a roadmap.
An interesting proposition that could be an economic stimulus. My wife and I saved for years for our kids college and with help from them working they have no debt, but obviously many current and former students aren’t that fortunate. The fact that my Baby Boomer and prior generations benefited from tax subsidized, low cost college and then proceeded to abandon our children with that type of tax support has put a large financial burden on the current generation of students which impacts our economy. Ask yourself how much different this proposal is than the business tax breaks, corporate welfare and farm subsidies doled out in the interest of improving business incomes and stimulating investment? It seems no different to me. I’m not a fan of totally free college, but current debt relief followed by going back to the same financial support that my generation and those that proceeded ours benefited from would be a good start to giving our children and grandchildren the same economic opportunities we had.
See some comments saying giving education to all is economic madness. Let's be real here – are we seriously suggesting that the world's foremost superpower and biggest economy cannot find the money to educate its people?
I’d love for this to happen. Largely because student loans are an outrageous form of extortion these days. But I honestly don’t think it’s sustainable, and more importantly it becomes a “then what?” issue. The devil is in the details.
A one-off debt wipe isn’t going to solve the problem, unless it is accompanied by long-term changes to how education is delivered in the US. Statements like this make great headlines, but aren’t good policy (one thing Warren and Trump have in common is that they are extremely good at no-substance, poorly-considered but populist announcements).