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Canceling All College Debt Will Make Us Smarter and Richer

Originally published at http://www.commondreams.org/views/2019/06/28/canceling-all-college-debt-will-make-us-smarter-and-richer

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I am definitely in favor of a student debt Jubilee! Yes! Please! My question is…for those who have been paying off their student loans and finally came to the end…all paid up…how will they feel about the debt forgiveness of others?

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How will students who want to go to private colleges get loans if the lending institutions have questions about repayment?

Amazing to think that predatory investment houses and banks that have squandered billions can go to the government for the wave of the ABSTRACT wand of even criminally acquired debt - but socialism only works for those who destroy. Imagine that…

Little has changed since Richard Wolff framed the situation in 2016

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I became an indentured apprentice in the Detroit Electrical construction trade for a four year period way back in 1970. Most of the cost for training was picked up by the Local Union as a way to maintain a well trained workforce in the jurisdiction for current and future expected labor needs. Except for one day in the trade school for book work every two weeks, it was all on-the-job training. When I completed the program, I had no debt to follow me for years and years like the average college graduate, while I enjoyed an above average income with no perpetual bank note to keep me up at night.

Industry would do well to fund college education if they want to survive. As it is now, the biggest benefactors of this screwed up higher education plan is the banks, where the employees are indentured to them for a very long time and at high interest rates, where the total cost of an education loan can be double over the life of that loan, just like a mortgage on a house.

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Hi theoldgoat:
Thank you for Richard Wolff. I learned a lot from this man’s brain ----I am in love! : )

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I wonder the same. People have issues with fairness and I see Republicans wrecking havoc with this idea. Imagine the commercial: “You paid your loans, now you get to pay off other people’s loans too.” We can get into Trump, tax cuts, etc., but it’s not hard to imagine this being another easy “Obama phone” play by opponents. As one who paid their loans off, I can attest to having mixed feelings about the idea. At the same time, I have to plead ignorance (like many people I bet) about its workings.

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The govt. is paying off the loans for the students, not giving the amount of the loan to the students.

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Paying for student loans is VERY SIMPLE. The federal government owns the debt and it can wipe the file clean in an instant. If it decides to pay recent past loan recipients, it can do that too. For such students getting paid back is like they had a forced savings scheme they can now draw on. All this money would be spent into the everyday economy instead of going to the money lenders at the top of the wealth divide.
That’s how we would be richer,at least. Smarter maybe.

It’s not generally understood that FICA is not actually used to provide loans for students. As a tax it’s all destroyed. The Fed has no use for any extra money. It just creates to pay it’s bills ad hoc.

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Well, they have to live with the fact that they’re chumps and they’ve been had. Life isn’t always fair. Kinda like all the immigrants waiting for their visas while 150,000 cross the border illegally every month claiming asylum.

All of the last several decades of brainy ideas have been incredibly short-sighted:
Student loans
Nuclear energy
Nuclear bombs
Promoting cars ahead of mass transit
Every family having the own house and yard with hardly and attention to population growth
Wars, wars, wars
Plastic packaging with individual apportionment

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The easiest way to immigrate to the US is through graduate school. Ever since around 1970 when the law allowing foreign graduate students coming from outside of Europe more slots, technical graduate majors have been mostly foreign. For graduate assistants, these positions are often with stipend and without tuition.
Americans are mostly either not qualified or ready to leave school and go to work.
In addition to the US citizens lack of technical ability at the college and graduate level, international rankings of grades 3-12 put US students’ ability near the bottom of the worlds countries in subjects including reading, math, science and geography.
I think making college a real possibility for all students gives them a dream that can come true. I hope that K through 12 can also improved.

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It should be clear that the *Powers That Be do not want the “common ruck” educated, or informed, or empowered. The interest and intent is to enlarge and maintain the system of rule by wealth and greed, profits above all else, not education and truth.

An educated, truthfully and fully informed populace, with time to think and recognize their true enemy, is anathema and an existential threat to the domination by obscene wealth and the economic, governmental, system that it built and controls.

No, populations must be kept “barefoot and pregnant” metaphorically speaking - kept as wage and debt/interest slaves, addicted to their opium “devices”, worshipers of shallow fame, celebrity and labels, surrounded by ads, exhortations to “buy”, ignorant of science, bathed in “religious” dogma and myth fantasy, victims of institutionalized racism and sexism - a parasite on Mother Earth that fouls or allows their own planet to be poisoned to extinction…THAT is what the ruling class work for, NOT education!

Cynical? Yeah, I guess…

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It is a tax on Wall Street, the people who have ripped us off for decades, given us all of our recessions, and given us the inequality in this country that is now worse than the Robber Barons Era, that is paying for the advanced education!

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Robotics is coming, the sequel to automation. I’m thinking that low level jobs are in for severe trimming. McDonalds is doing it, self-order in some place. Stores are doing self-checkout.
I think that leaving the US population bereft of decent, competitive, scientific as well as humanistic education is just a ticket to nowheresville. And the elite, the one percenters, wont have anyone who can afford to buy their automated junk.

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It’s actually a tax on stock, bond, and derivative transactions. To the extent that trading volume falls (estimated to be by about 50%…mostly computerized trading) the investment houses on Wall Street will lose commissions. To the extent that banks and investment houses on Wall Street trade for their own corporate accounts, they will pay the tax…but the bulk of the tax revenue will actually be paid by individuals (mostly the very wealthy who own and trade the bulk of stocks and bonds).

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Smarter? Hold on a minute…only if colleges and universities start teaching critical thinking. I know many college educated fools, with Bachelor’s degrees on up, who support Trump. How “smart” is that?
Yes, canceling the debt makes sense, but a debt free college education won’t necessarily make one any smarter.

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