People Want More Affordable Education Over Forgiven Debt

Guide to Getting Out of Debt Using Your Brain and Smart Ideas

National Public Radio (NPR) recently ran a poll to determine what Americans think about student-loan forgiveness. More than half the respondents favor President Biden’s plan to forgive $10,000 in student debt per borrower. Among people with outstanding student loans, 84 percent support Biden’s debt relief plan, and 68 percent want the Biden administration to forgive … Read more

Crocodile Tears: Congress Tinkers With Bankruptcy Code But Forgets Student Debtors

President Biden signed the Bankruptcy Threshold Adjustment and Technical Corrections Act yesterday, and congressional leaders pat themselves on the back. According to Senator Chuck Grassley, one of the Senate bill’s sponsors, the new law will remove some hurdles to the bankruptcy process and “assist small businesses and working families to weather financial hardship and emerge … Read more

It Will Surprise You Who is Not Happy With Biden’s Student Loan Forgiveness Plan

President Biden promised college borrowers $10,000 in student-loan forgiveness when he was on the campaign trail. He has yet to deliver on that promise. Some progressives urge Biden to forgive more student debt. The NAACP said, “$10,000 is not enough, We’re calling on our elected officials to cancel federal student loan debt with no means-testing.” … Read more

Parent Plus Loans Are a National Disgrace

Parent-Plus Loans Are a National Disgrace

President Biden is flirting with a massive student-loan forgiveness plan–$10,000 in debt relief for 97 percent of all college borrowers. The Washington Post, perhaps America’s most progressive newspaper, urges him not to pull the trigger. “Biden could ease the burden on the genuinely disadvantaged in a number of more targeted ways,” the WP editorial board … Read more

Why is the Department of Education Forgiving Loans But Chasing People in Bankruptcy?

Earlier this week, the Department of Education wiped away all student debt owed by more than a million former students who attended one of the Corinthian Colleges campuses. The cost? About $5.8 billion. Since his administration began, President Biden has approved $25 billion in loan forgiveness for 1.3 million student borrowers. That’s a lot of … Read more

College Enrollments are Down, Tuition Prices are Up & Student-Loan Forgiveness Is on the Way: The Wounded Grizzly Syndrome

College Enrollments are Down, Tuition Prices are Up & Student-Loan Forgiveness Is on the Way: The Wounded Grizzly Syndrome

Earlier this week, Inside Higher Education, reported that college enrollments have declined for five straight semesters. In the spring 2020 semester–when the COVID epidemic began–the nation’s colleges enrolled 17.1 million students. Today, 15.9 million Americans are in postsecondary classes–a decline of 1.2 million students. Some states saw more significant declines than others, and some saw … Read more

If We Can Give 14,000 Law Firms Covid Cash Why Can’t We Forgive Student Loans?

Our government spent trillions of dollars responding to COVID, and just about everybody got a little something from Uncle Sam. Sometimes I think my wife and I are the only people in the United States who didn’t get a COVID relief check. For example, 14,000 law firms got Payroll Protection money, ostensibly to help them … Read more

Don’t Count on Your Parents to Bail You Out of Student Loans

In the 1990s, Wendi LaBorde took out student loans totaling about $75,000, but she could not repay those loans. Over time, interest accrued on the debt. In 2010, the Department of Education obtained a judgment against Ms. LaBorde for approximately $395,000–five times what she borrowed. In 2014, LeBorde received the proceeds from her late mother’s … Read more

Federal Student Loan Payments Turned Off Until August 31, 2022

Federal Student Loan Payments Turned Off Until August 31, 2022

The White House is extending the pause on student-loan payments until August 31st–an extraordinary development. By the time this pause ends in September, millions of student borrowers will have been relieved from making payments on their student loans for almost two-and-a-half years. Indeed, as Ron Kline, President Biden’s chief of staff, pointed out: Joe Biden, … Read more

Don’t Need a Crystal Ball to Predict Federal Student Loan Default Rates to Explode

Don’t Need a Crystal Ball to Predict Federal Student Loan Default Rates to Explode

In March 2020, the U.S. Department of Education allowed 37 million student-loan borrowers to pause their monthly loan payments due to the COVID pandemic. DOE extended the payment moratorium several times, allowing all these college borrowers to skip making payments for two years without accruing interest or penalties. This moratorium gave student debtors much-needed relief … Read more

It’s Official, Congress is Making Up Student Loan Solutions on the Fly

Paolo Bacigalupi’s apocalyptic novel The Water Knife is a tale about the struggle for water in the desert Southwest. Lucy, one of the novel’s lead characters, is an investigative reporter trying to understand the major power players who use the law, violence, and vigilantes to control water for their various constituencies. At some point, Lucy … Read more

Want to Know How FUBAR Federal Student Loans Are? Read This.

Federal Student Loans are so FUBAR

Betsy DeVos, the Wicked Witch of the Midwest, was perhaps the most despised member of President Trump’s cabinet. As Trump’s Education Secretary, she coddled the for-profit college industry and (in my opinion) bungled the Public Service Loan Forgiveness (PSLF) program. Nevertheless, in a speech delivered in November 2018, DeVos revealed to the nation just how … Read more

Student Loan Debt Strike is Cute But Ineffective

Student Debt Strike, an online Reddit community, advocates for a mass student-debt strike as the best way to pressure Congress to grant wholesale student-loan forgiveness. I support this group’s goals. Economist Stephanie Kelton and others have argued persuasively that forgiving all federal student-loan debt would stimulate the economy. Relieved of burdensome student loans, more than … Read more