In America, pairing universal financing with little cost discipline has created a moral hazard for colleges to increase prices. Despite the largesse displayed, the CRFB estimates student debt loads will return to their present levels in five years @TheEconomist#StudentDebt
Student loan debt cancellation:
1) Regressive: rewards higher income earners who are more likely to have debt.
2) Unfair to borrowers who repaid loans or worked to fund education.
3) Disincentivizes institutions from cutting costs & borrowers from shopping around for best value.
Once again, not a single question on the elephant in the room at the FOMC presser: the Fed/Government role in creating the situation we are in.
Supply chains & war blamed a # of times, but no mention of 0% rates, $5 trillion in bond purchases, and $7 trillion in national debt.
A well thought out article from @politico on #studentloans and the negative ramifications that come with blanket forgiveness. https://t.co/MPNi8WaWBW
Unfortunately, we are in the midst of the beginning stages of a bursting bubble as the #fed is forced to back away from unprecedented stimulus and purchasing due to #inflation