AEI scholar and contributor Frederick Hess in his piece “The oddest sort of progressivism” lays bare the wacky idea of wiping clean $1.6 trillion in student loan debt.
Chiefly, the idea is pushed most heartily by the people most likely to benefit: the people who staff the 200 progressive organizations – not the purported constituents – who last week petitioned Biden to do it “on day one” with a stroke of his pen. The whole thing is a ploy to transfer wealth from those who didn’t go to college and those who worked their way through cheaper schools to grad school graduates at pricey private schools and those who pursued grievance instruction in identity politics departments. Simply put, the equation goes something like this: money will flow from skilled tradesman and those working their way through school to those who’ll earn about $1 million more in lifetime income and rioters demolishing monuments and blowing up our cities. The former could be excused for thinking themselves to be chumps and suckers as the latter laugh all the way to the bank. This kind of thing turns the shiftless and conniving aristocrats in 18th-century Versailles into paragons of virtue.
The biggest chunk, some 40% of the debt, was accrued for grad study “by doctors, lawyers, and other professionals in pursuit of lucrative credentials” according to Hess. Add to that, the gambit does nothing to address the colleges’ complicity in the skyrocketing tuitions that drive much of the debt. Easy student loans mean more breathing room for college administrations to hike rates and offer instructional silliness.
What do you get for the higher price? Certainly not a better education. The grievance industrial complex is too well entrenched in many Humanities, Social Science, and identity politics departments. Many students will matriculate their way through and come out only equipped for political activism, while facing a student loan bill that neither their activism nor barista job can afford.
Here’s an idea: put the colleges on the hook for their graduates’ inability to repay. I can’t think of a better way to use Harvard’s $42 billion endowment. The taxpayers shouldn’t be saddled with a debt that was stimulated by administrative flights of fancy in the absence of accountability. Make them as answerable as we are in meeting our mortgage. As such, all of us will be further advantaged by no longer having to submit to the half-witted sermons of grievance politics graduates. That industry could very well dry up as schools quickly realize that “… Studies” degree programs are drawing down the school’s bank account.
Let’s ignore the crony capitalist pleas of the self-interested and, instead, make the schools responsible for the quality of their instruction and the occupational fate of their students. Now that’s an idea I can support. How about you?
RogerG
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