Bernie Sanders Takes a Sledgehammer to Student Debt
Bottom line is we should not be punishing people for getting a higher education. It is time to hit the reset button.”
– Bernie Sanders
Americans currently have about $1.6 Trillion in outstanding student loan debt. This has crushing consequences for our economy as some debtors struggle to pay off these loans in a job market where income growth barely keeps up with inflation. Unlike Trump’s businesses that were able to take advantage of bankruptcy six times, those with student loan debt cannot have their loans discharged. They tried to finance the American Dream and are now stuck in a nightmare that they cannot escape.
Bernie Sanders has become the latest Democratic presidential candidate to propose a plan to help those who are struggling with their student loan debt. Unfortunately, this plan overshoots the target by eliminating all debt. The relief is not subject to an income test so that everyone will be helped, regardless of need. It also makes no differentiation between debt incurred at a community college or at an overpriced private university. Without narrowing the focus, this plan is the financial equivalent of using a sledgehammer to swat a fly.
The other flaw in the plan is that it does not take into account those who made sacrifices to avoid the debt in the first place. Parents who CONTINUE READING: Bernie Sanders Takes a Sledgehammer to Student Debt