It has been attempted before to suggest the idea of cancelling all student loan. But today’s attention is addressed to Bernie Sanders and Senator Elizabeth Warren. Both proposed to cancel student loans but in different measures. After Senator Elizabeth Warren announced about her initiative of cancelling $640 billion of student debts in the US, Senator Bernie Sanders proposed to cancel all $1.6 trillion of student debts.
But who would’ve thought that these proposals might not be the problem solvers, but the problems themselves?
We’ve seen proposals from other Democratic candidates as of to make college cheaper to repay the debt more comfortable. But as for now, Mr. Sanders and Ms. Warren are the only one to propose the plans for such measurement. There are more than 44 million students who use student debt to pay for their education in the US. And according to the researchers, almost 40% of them could default.
Both senators suggest making undergraduate programs at public colleges free, resulting in manageable access to necessary education.
According to senators, this will reduce the need for student loans. It’s not clear if they realise or not that most of the student loans are taken to attend private colleges, for-profit colleges and graduate school.
Department of Education released statistical information, which states that only 45% of student loan serves for attending public schools and universities. The data also displays the high demand for a student loan for those who want to study in private schools, graduate or professional schools.
So if we reach the state when Senator Sanders’s proposal becomes actual, even after pushing the magic “reset button” the cycle of borrowing money to attend colleges and universities will start all over again.
What will happen next? Will the new student debt be forgiven, too? Or will the proposal only concern a specific generation of students who feel like they have won a lottery? Will the students who already paid their loans feel betrayed, and the new students feel left out?
Although the Sanders and Warren plan sound outstanding, and they could, in a way, provide more funding for private nonprofit colleges. But in a long-term run (even in the nearest future), neither of those plans will make a significant impact on borrowing culture.
So for now, the US $1.6 trillion student loan stands. Maybe the plans need more research and details for them to work?
Bernie Sanders's Student Loan Cancellation Might not be the Problem Solver After All
