What could go wrong with forgiving student loans?

Lots.  Via Gillespie On Forgiving Student Loan Debt:

Bailout are a bad idea.  Letting individuals keep all their gains while spreading losses to the rest of society works as well in business as it would in Las Vegas.

If you force lenders to forgive loans they will not have the incentive to make more loans and/or will jack up the rates.

This is a transparent vote-buying scheme.  Guess who the recipients of the bailouts will want to vote for?  The problem is that eventually someone has to pay the bills.

The government should not have been involved with this to begin with, because their loan programs just drive up the cost of tuition for everyone.  And they shouldn’t be involved with the solution.

3 thoughts on “What could go wrong with forgiving student loans?”

  1. Well, you have burst my bubble. I just decided to join OWS with my plan to solve the country’s economic woes. It is quite simple really. We just make lottery tickets and gambling machines free. Any fool can see that this would increase the number of gamblers, which would in turn increase the number of winners and the proceeds could pay off our debts.

    Now I bet you will find some picky little problem with my great plan.

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  2. Let me tell you why these people demanding “bailouts” for their student loans are abject fools. The bailouts the banks received have been paid back…with interest. The taxpayer actually made a profit on the bailouts. http://money.cnn.com/2011/03/30/news/economy/tarp_program/index.htm

    These people want their “bailout” to be a forgiveness of their loan. Reason number 1 of why they’re fools is, if you listen to them, they don’t seem to know the bailouts were actually loans. Reason number 2 is they already have loans that they don’t want to repay. Basically, — unknown to them because people like this don’t actually follow current affairs — they want a loan to repay a loan…if they want a “bailout” they way the banks got a bail out, which they do, they just arent smart enough to know what it is they’re asking for.

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