Finance Icon Says “Evil” Student Loans Shouldn’t be Forgiven
(UnitedVoice.com) – Over the last two years, America has engaged in a discussion about student loan debt. Some say borrowers pledged to pay their debt and are morally obligated to do so. On the Left, Democrats such as President Joe Biden say $10,000 in forgiveness is essential. Others want $50,000 of school loan forgiveness, and some, like ultra far-left Democratic socialist Rep. Alexandria Ocasio-Cortez (D-NY), say the government should forgive all school loans.
Over the last year, Biden has placed a moratorium on payments several times. The most current timeline has payments resuming on August 31. Recently, the president said he would announce soon about student loan forgiveness. Financial guru, radio show host, and best-selling author Dave Ramsey blasted the idea and said student loan forgiveness wouldn’t solve the problem, and the government shouldn’t forgive the debt.
Ramsey Says Student Loans Shouldn’t Be Forgiven
In 1995, President Bill Clinton pushed the notion that every American should get a college education, and America bought the narrative. Since then, attending college has become an expensive expectation under the guise one couldn’t be successful without a college degree. The president pushed to expand student aid and increase Pell Grants. The Clinton administration argued the government would reduce tuition and cut the federal budget.
Neither of those two things happened. Nerdwallet says the total US student loan debt is at an all-time high of $1.75 trillion. In 1995, it was $23 billion. The national debt has exploded to over $30 trillion and is climbing quickly. Canceling student loan debt would accelerate taxpayer debt even further.
On Thursday, May 19, Ramsey told Business Insider he doesn’t support canceling student loan debt for several reasons. Chief among them is those seeking a college education shouldn’t incur the debt. Regardless, Ramsey argued the government doesn’t have a solution to the crisis. If it forgives student loan debt now, it would only amass again as new students take on more debt to attend college.
In an email to Business Insider, Ramsey said if student loans are horrible and evil, they shouldn’t be available. He said it’s intellectually dishonest to forgive student loans while the government is still making them.
What About Stimulating the Economy?
Business Insider said partial forgiveness would significantly impact the US economy. Still, Ramsey said that’s simply not accurate. He called it hogwash and smoke and mirrors and said it’s nothing more than a Democratic gimmick to attract votes.
On October 14, 2021, Ramsey told Fox Business that only 2% of Public Service Loan Forgiveness (PSLF) applicants actually receive the relief promised to them by the government. So, if the government denies 98% who apply, Ramsey said that’s a government scam. If loan forgiveness really stimulated the economy, the government could have forgiven loans for decades but chose not to do it.
The popular radio host said if Americans were serious about pursuing higher education, they should pay cash for college or attend a more affordable solution such as community colleges or trade schools.
So, is Ramsey right? Is college a culture-wide con?
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