Here Are Two Ways to Fix the Student Loan Debt Issue.
Student loans should NOT, under any circumstance be forgiven. This would saddle taxpayers with someone else's debt. Unfair to say the least...but here are a couple ideas to help fix the issue!
Students went to school and received the benefit of what their loans were given to them for…an education. When I take out a mortgage or any loan for that matter, I also receive the benefit what my loan was given for…either a home or car or whatever I need to purchase. I benefited from it and therefore, I am responsible for paying it back. Here are a couple ideas for everyone to chew on regarding student loan debt.
Renegotiate the loan to a low, fixed rate:
I understand that these student loans, in many cases may be predatory in nature. In many cases, the interest on these loans makes it so paying them off with monthly installments is nearly impossible. In these cases, and ONLY in these cases, the federal government should have the loans renegotiated to a low, fixed rate so the interest cannot accrue faster than the loan can be paid off. This would keep the taxpayer off the hook for someone else’s responsibility while making the loan repayment more affordable/manageable. This alleviates the issue of not being able to pay back the loan due to excessive interest accrual. Congress should also act on this and pass laws to make student loans non-predatory.
College endowments should be fair game:
With student debt being a big issue, I am amazed at the lack of interest in reducing the actual cost of tuition itself. Private and public colleges are worth billions of dollars and college endowments are much of the reason. In 2021 endowments increased by a massive 35%. The median college endowment size increased to a staggering $200,000,000! This according to the National Association of College and University Business Officers and the Teachers Insurance and Annuity Association of America. More information on this study can be seen here. The fact is these endowments add billions of dollars to the bottom line of all colleges/universities. Click here to see the list from Wikipedia for fiscal 2021. Is there really any reason why colleges/universities should be charging as much as they do for tuition with endowments like these? How about lowering the tuition at all colleges based on their endowment totals for the last 5 years or so? That could make a HUGE difference on affordability for those who don’t come in with a full scholarship.