Wednesday, June 26, 2019

Bernie Sanders' Loan Bailout Would Benefit Colleges, Not Students




On Monday, Sen. Bernie Sanders, I-Vt., and Rep. Ilhan Omar, D-Minn., introduced legislation to wipe out every dollar of student loan debt in the United States, eliminating it for roughly 45 million Americans.

The proposal would make public colleges and community colleges tuition-free.

Loan forgiveness will not be a bailout for the middle class, but rather for colleges and universities.

The reason schools keep raising their tuition is that students have easy access to federal student loans, and the government has a near-monopoly on the sector.

Colleges know they can keep raising tuition without fear of losing students because federal loans serve as a guaranteed subsidy.

Contrary to the plan introduced by Sen. Elizabeth Warren, D-Mass., which would forgive up to $50,000 of student loan debt based on one's income, Sanders' proposal would eliminate all student debt regardless of one's level of need.

At a time when Americans are more frustrated than ever with the education colleges are providing for the price, policymakers should be discussing ways to hold colleges accountable, rather than rewarding them with a blank check.

https://www.dailysignal.com/2019/06/25/bernie-sanders-loan-bailout-would-benefit-colleges-not-students/

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