Warren to Cancel Student Loan Debt – Are Mortgages Next?

studentI’m sorry not to be a college student again. Then again, when I was, I worked three jobs (intramural referee, bus driver, and customer service rep) and attended a reasonably priced state university over an expensive private school and thus never took out any student loans. Boy, would I have simultaneously felt stupid for working and mad too that my lazy roommate, who went to keg parties three nights a week and did take out loans, would get his education for nothing, while my parents and I paid for my own?

Senator Elizabeth Warren announced this week she would take executive action “on day one” to wipe out most student loan debt, citing a loophole in the Higher Education Act of 1965 that appears to allow the Secretary of Education to do it. Legal challenges would inevitably follow such a move. Mark Kantrowitz, the publisher of Savingforcollege.com, stated, “Congress didn’t mean to abrogate its responsibility and allow the Secretary of Education to spend $1 trillion. I don’t think Warren’s plan would even pass the legal counsel of the Department of Education, let alone a court challenge.”

Warren’s idea compares with a similar plan from Senator Bernie Sanders, who proposed loan forgiveness through legislation. The current Secretary of Education, Betsy DeVos, has called all such ideas “crazy.” Indeed they are.

Besides the industrious types like me who chose to work and the parents who very thoughtfully saw college coming for 18 years and took steps to plan for it with 529 plans and such, what do those who choose not to attend college get out of the deal?

That college costs have soared above inflation is not in dispute. However, the federal government already subsidizes students annually to the tune of billions. Further, Congress is part of the problem because when it votes periodically to increase Pell grants and the like, colleges simply follow suit with near-identical hikes in their sticker prices.

Needless to say, wiping out student debt competes with “Medicare for all” for being too extreme and too expensive, with its trillion-dollar price tag. And the question truly is this—will the Far Left seek to wipe out home mortgages next?

If so, time to buy a bigger house!

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James is correct, the PX and commissary are not a great benefit over most civilian stores. My wife feels after you add the extra time to go there, the extra gas and the tip for the bag girls plus the surcharge and limited stock it’s not worth the hassle. But that’s not what this article is about. Student loans were not forced on anyone. This was the easy out at the time. You didn’t have to take it. I didn’t and many others didn’t. I have a masters degree and no student loan. My daughters graduated from college without student loans so it can be done by the average person. My wife and I are Registered Nurses. Yal, I don’t drive a monster truck or a Cadillac Escalade, l live in mid size home and still working at 70 with my wife of 33 years. I don’t feel sorry for… Read more »

James Smith

I clearly remember when COLA increases in military pay were followed on pay day with exact COLA percentage increases in all of the items in the commissary and PX. So, we really gained no increase in spendable money, because our costs rose the same amount as our raises. Frustrating, to say the least. It does not sound any different with the increase in the loans followed immediately by increases even greater in the tuition.