Inside Higher Ed: Loan Changes, Sans Congress

Thanks for this opportunity to post.

Consideration needs to be given to the fact that the national student loan debt level ALREADY fueled economic growth, as loaned funds were invested in tuition, room and board in the years the money was lent. The theoretical economic propulsion from forgiven borrowers having hundreds of dollars more of disposable income is in fact simply another clever hall of mirrors.

It is appalling that responsible adults entering into legally binding loan contracts of their own free will would seek a "pass" via loan forgiveness. It seems the height of irresponsibility in a free market. The concept is arrogant, supercilious.

College and university costs have been ridiculously outpacing inflation for decades. There is the root problem. Students in Cambridge, Massachusetts attending world-class univerisites nearby enjoy the best, first-rate facilities, labs, faculty, technology, and so forth. These benefits are paid for by students and families in a combination of personal contributions, grants, scholarships and yes, loans. Everyone enters the halls of university with eyes open, and significant planning around assuming the financial burdens. The privileges of such education are enormous (and should be). But someone has to pay the bill, and I think that's up to the families and individuals who (1) choose the institutions they attend; (2) choose the degrees they pursue; and (3) choose the college financing methods including obtaining subsidized, low-interest loans.

Of particular note: there is little evidence of students making sacrifices today. Restaurants, bars and movie theaters are over-crowded with undergraduate and graduate students spending fiercely, every night of the week. iPhones and data-rich plans that cost alot to maintain are prevalent. There seems to be unending spending in all our establishments locally, suggesting either the 31,000 signatures came from less well-heeled students in different places; or that there is serious misalignment with spending priorities in the student households. Debts are legal obligations; Netflix subscriptions and smart phone data plans are nice-to-haves.

I suggest that student loans be amortized by a national movement of students who abandon monthly subscriptions for distracting forms of entertainment, at least for a couple of years.

Let's not risk creating further economic decline in the nation by forgiving the debt burdens of the priviliged few, because of a social media response.

How is this movement any different than a bank or insurance company accepting bail out money?

For the record, in undergraduate college my parents sacrificed, and I worked, to avoid loans. In graduate school, I worked full time and assumed loans which were interest-rate subsidized by the taxpayers, and fully repaid by me. And for my children, a great gift that my wife and I have been able to provide has been a fully paid tuition, room and boards to support an education at great private universities, at some probably cost to our retirement lifestyle, avoiding any burden for our children of student debt.

To the 31,000 individuals who signed a petition to the White House about forgiveness, and to Mr. Applebaum, I say: time to grow up and assume full responsibility for the money you already spent for your own personal benefit.

Thanks for the forum.

Apollo