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J ANDREW MILLER's avatar

Moral hazard - thank you, Charlie, for making me think a bit. My initial reaction has always been to give a break to those kids who, for whatever reason, borrowed funds for college education and find themselves under water. In my mind the entire federal student loan program needs a hard look to assess when and whether to extend credit for education.

No doubt there are institutions out there that have taken advantage of students who are left with debt and a worthless degree of some kind. Those institutions should pay the price - be closed down - if they can’t deliver. By the same token our kids need to be better counseled to avoid what are really scams.

I know that there are specific programs where student debt is “forgiven” for public service- no doubt military veterans and military service should qualify. Query, can this programs be expanded so that the debt maybe forgiven but there is public service associated with the debt reduction? It is not a “free lunch” to the debtor.

I agree, we should not be “bribing” young people for their votes and this certainly looks like that fact pattern. Again, thanks very much for making me think - moral hazard here is very real and as a society we need to be very cautious.

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Jane in NC's avatar

I'm a political moderate, and I'm opposed to forgiving student loan debt except in dire circumstances. The people who took out those loans knew what they were taking on, and they did it anyway. In doing so, they also reaped the benefit from them - a college education. But now that it's time to start paying them back, they're whining about how hard it is and how it's cramping their lifestyle, preventing them from buying a home, etc.

My husband and I know all about that. We took on a massive amount of student loan debt so that he could get his master's degree from one of the Ivies and find a better job. During the subsequent repayment term, the economy crashed, my husband lost his job, we had to sell our house and relocate, twice, so he could pursue job opportunities - which meant I had to quit my job and find new work, too. We downsized everything in our lives just so we could meet our financial obligations, including his student loan debt. It took 10 years to get out from under it.

I completely sympathize with people facing a mountain of student loan debt. Been there. But I also know they took on an obligation to repay those loans, and they have to suck it up and do it - just as we did.

One thing I will not tolerate, though, is being lectured by the likes of Thurston Romney III about 'bribes' when he was perfectly happy to take his own in form of tax giveaways to people like him over decades. But then I haven't forgotten his crack about 47% of the country not carrying their load, while those same people were carrying him. My response to Romney isn't printable.

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