This is why I think that nothing should be done on the loan issue until the figure out the long term function and how that will change.
College has just become too damn expensive. I have heard a lot of arguments about it becoming so due to the fact that cheap loans and subsidies are a thing. That partly makes sense to me, but I can also see how turning that tap off could be worse than having expensive college.
I don't think he should make a move on it unless they need to bolster the economy immediately, or until they figure out what will happen regarding loans, cost, or subsidies next.
This is part of my issue with it as well, I feel like forgiveness doesn't inherently solve the problem, it's just a giant loss and then you can rerack things up unless you got a plan to counter act it.
there was maybe a semi-justifiable economic (leaving the constitution out of it) argument for debt forgiveness as the only viable path or any stimulus if mcconnell controlled the senate, but with dems controlling the senate calendar, and already slating trillions in covid relief and stimulus and additional trillions for infrastructure there is absolutely none.
I'm sympathetic to the arguments about college dropouts and debt (I'm guessing that's where Bidens 10k is coming from and push for CC/trade school, as in not everyone needs to party at a 4 yr uni), but at the same time I get the counterpoint that these were personal choices as well with risk/responsibility attached.
Seems somewhat contradictory to say the loan program is terrible yet still want free college access because it's a public good. What I mean is the loan program would still likely provide a public service if it's allowing cheaper access but maybe the argument is more about price control through rationing really cheap/free from the supply side vs price inflation if the market can just grow through loans and push costs those onto attendees.
This is a plan (10k and push for CC/trade schools) to me I am in very in favor for. It balances forgiving a goodly part of the debt (I know it could be as little as 10% for many) but hey, it doesn't hurt, and probably gets a significant amount of people out of debt, or near even. Add in the trade and CC schools that will really help funnel a significant population who really shouldn't be going to a 4 year to get into education paths with good paying jobs, and allow those who do the 4 years be able to get gen eds done and save a ton at the 4 years, it'll also force the 4 years to compete which (could) lower those prices.
The only other thing (besides figuring out long term) would be to get outstanding loans all refinanced down to like 1% or 2%, and any debt accrued via the delta of what that loan would've been at that new rate vs what it was kicked back into that person's pocket as a second form of stimulus. That will get some back in those people's hands, and also allow them to know their loans aren't really going to grow appreciably compared to the 5-6-7% loans some might carry.