Student loan debt is receiving a lot of attention, especially with the 2012 election cycle in full swing and President Obama struggling to retain his strength with college students and young voters.
In early 2010, President Obama and the Democrat-controlled Congress (completely) forced banks out of the student loan program.
www.nytimes.com/2010/03/26/us/politics/26loans.html
Many in the Occupy Wall Street crowd have been fuming about student loan debt over the last few weeks.
www.huffingtonpost.com/2011/10/12/occupy-wall-street-student-loan-debt_n_1007889.html
Last week it was revealed that student loan debt in the US will exceed $1 trillion this year.
www.usatoday.com/money/perfi/college/story/2011-10-19/student-loan-debt/50818676/1
A few days ago Ron Paul called for an end to the federal student loan program.
www.foxnews.com/politics/2011/10/23/paul-calls-for-end-to-federal-student-loan-program/
Yesterday Obama announced a plan to lower the debt and payments on existing loans.
He claims it will cost the taxpayers nothing. If so, I can’t figure out who’s going to pay for it…
Meanwhile, many on the left are calling for complete student loan forgiveness under the guise of “economic stimulus.”
http://dailycaller.com/2011/09/15/moveon-org-u-s-rep-promoting-student-loan-debt-forgiveness/
While it’s easy to offer sympathy for unemployed college graduates straddled with student debt, we must not lose sight of 2 points
- Borrowing money to go to college is not necessarily a bad thing, but those who choose this route do so with the understanding that a high paying job is not guaranteed.
- When you take out a loan, you agree to pay it back. If you don’t, someone else must accept the loss.
As a university professor, I believe in the value of a college education. But someone must pay the bill, and the American taxpayer simply can’t afford it. Prospective college students have an obligation to make smart choices when it comes to going to and paying for college. Payoffs associated with a college education accrue to the graduates, so they must be held accountable for their repayment. There is no middle ground here.
I applaud Ron Paul for having the courage to address this thorny issue. With the federal government in complete charge of the student loan program, I expect the money to keep flowing. I also expect that taxpayers will end up with a significant portion of the bill.
I agree with this blog most of the time, but not this time. Education is the key to the future. I know you have libertarian leanings but we MUST invest in education to succeed in the future. We have no choice.
Education is key, education is key!! Why does it have to be a college education? I was Navy 6yrs in a high tech field, got out, been making a great living ever since, no degree. Vocational training? OJT?? I am so sorry that all of the Sociology, Music Theory, Womens Studies, Communication and Basket Weaving degree holders can’t find a job in their field. Maybe they should have thought of that before they took our a $100k loan to get a worthless piece of paper for a field that doesn’t exist. The USA used to lead the world in innovation and manufacturing. Now we lead in whining and complaining. Where in the consitution does it state the Fed Gov shall be in the loan business anyway?
Dr. Parnell your blogs are consistently excellent but you seem to attract comments that make a guy just scratch his head. W2: exactly where in the blog does Dr. Parnell say we should stop education? In fact he explicitly says he believes in the value of a college education in the second to last paragraph. What is in depute is who should pay for it! A kid who wants to “follow their dreams” and major in womens studies for example, should have to pay the bill even when they learn they are not employable with a major like this. If we continue to subsidize bad decisions we will just get more bad decisions.
Ty and Jeff – Agreed! This “education is key” is just a mantra. Yes, I went to college, but even engineering is taking hits in this economy. I think the trades are very important. I think ultimately it has to do with the work ethic. I know many guys who started their own businesses in plumbing, electrical, general contracting, etc, and who are doing much better than myself financially – I say good for them! Formal education is important, but it is not the end-all. It has become an entitlement, and depending on the field of study, one with some serious economic repercussions at that.