Student loan debt has just reached an all-time high of $1.465 trillion. That’s double the $675 billion in loan debt amassed in June 2009, according to a recent report from Bloomberg. With more than 44.5 million people in some type of student loan debt, it’s increasingly becoming part of the platforms of high-profile progressive policymakers.
Stephanie Kelton (Sanders’ former chief economic adviser) co-published a paper on student loan cancelation. Long story short, small increase in deficits (not an issue) for the federal government, improved fiscal condition for local governments, major macroeconomic benefits (most obvious, if you think of freeing up about a trillion and a half in disposable income that would have otherwise went to servicing debt) and a small increase in inflation. That inflation is a problem that emerges from good policy, people with high propensities to spend getting a bunch of disposable income and spending more on goods and services.
“Debt is a trap, especially student debt, which is enormous, far larger than credit card debt. It’s a trap for the rest of your life because the laws are designed so that you can’t get out of it. If a business, say, gets in too much debt, it can declare bankruptcy, but individuals can almost never be relieved of student debt through bankruptcy.”
Large student loan debt was put into place in the USA after Samuel P. Huntington’s address to the Trilateral Commission regarding what he called “an excess of democracy.”
The debt exists to deny graduates their choice of employment; previously, people had very often gone on to try to help their fellows rather than sell their hours and days to the highest bidder. The high-debt system penalizes that severely.
Unsurprisingly there are many complaints of fraud concerning student debt. Very disappointed that this department would violate young people’s trust and ambitions.
Do not believe I would ever be confused as a progressive but I want to believe fraud, dishonesty and unethical conduct transcends one’s orientation to political positions and the conduct of Secretary DeVos is nothing short of abysmal in matters of student loan forgiveness. Lenders and traditional universities/colleges have likewise fleeced countless citizens as this is just not a private, for profit issue.
Our BDTR has been before the Education Department for over two years now with no end in sight absent judicial intervention. I resent to this day her insult about “free money” as we have satisfied all loans and are seeking reimbursement as allowed under Obama era rules.
The Education Department might very well be the bigger culprit in this modern day Kansas City Shuffle as it is statutorily and regulatory responsible for protecting students yet it seems to prefer protecting the predators among us. Shame on them for continually failing fellow citizens who possess precious little organized voice and who are simply seeking redress from rules that fail to serve us…talk about a stacked deck.
This massive debt that cannot be cancelled is a systemic form of indentured servitude and should be unconstitutional under the 13th Amendment.
The US Government spends THIRTY TWO MILLION DOLLARS AN HOUR ON WAR!! We the People need to take back our government from the war-mongering oligarchs and use it for good instead of evil. When war criminals run the show, student debt will keep on climbing uncontrollably as the crooked leaders laugh all the way to the crooked banks.
I wonder if this debt would be such a problem if we all had jobs that would pay for the debt and afforded us a place to live and food to eat…basic necessities???
The only hope lies with different leadership. I’m not sure that the damage done can be returned to normal. The last presidential election may have been the point of no return, leaving only revolution as a remedy. Roll on John. War is over if you want it.
Amazing! An article on student loan debt and not a word about the fact that unlike all other consumer loans, student loan debt is exempt from bankruptcy protection. Also, no mention of the fact that the Department of Education makes a profit off of default student loans. They actually make more money when student loan borrowers default than they do when paid off on time.
Also Amazing is the fact that the one organization fighting to bring back bankruptcy protection to student loan borrowers was no mentioned: StudentLoanJustice.org.
Hadn’t seen that – !!
Thank you for the link —
Also Amazing is the fact that the one organization fighting to bring back bankruptcy protection to student loan borrowers was not mentioned: http://studentloanjustice.org/
I’m always frustrated when I see liberal organizations fighting for justice and the first thing they
throw at you is CREDIT CARD links for donations.
Why do we keep making banks richer and more able to screw us over by using their credit cards –
especially to donate to liberal organizations???