September 9, 2022 - 9:01 pm
The 1965 government-backed student loan program started with the idea that low- and middle-income families would be able to use loans to educate their children beyond high school and allow them to have greater lifetime earnings. Unfortunately, university administrations saw this as an easy way to increase endowments and profits, so they proceeded to greatly raise tuition. Larger loans were needed, plunging students further in debt.
In 1976, Congress decided to add to the students’ burden and help loan providers by revising the program so that the use of bankruptcy became nearly impossible.
Some students owe more in interest than the original loan amount. Some people seem to be angry, saying forgiveness is not fair and the students should pay back what they borrowed. Where is the compassion for those who were trapped by greedy, unscrupulous administrators and private loan sharks? Give the students a break with loan forgiveness and all of society will benefit.