Tag Archives: Forgiving

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.