The dilemma related to student loans I am shifting away from my customary satirical writings via “the mirror rearview” in order to remark directly on current events from an economic point of view. I would like to use this opportunity to convey my thoughts on the student debt reduction program that was just announced by President Biden in this blog. For the simple reason that I am a firm believer in the concept of personal financial responsibility, I am opposed to the debt forgiveness order. Nevertheless, I also consider the declaration made by Biden to be an another illustration of a government policy that has gone haywire, with debt relief in favor of a certain group of people. From a more macro perspective, the primary issue is that Congress has enacted hundreds of laws that are designed to benefit certain subsets of the United States population as well as the country’s taxpayers. When it comes to selecting “winners” or “losers,” the selection process has become more complicated as a result of the frequent adoption of executive orders by recent presidents of the United States. In 1965, when the annual cost of tuition was just a few hundred dollars, President Lyndon B. Johnson was the one who started the student loan programs. Since that time, the yearly cost of a regular college education has “mushroomed” to a current range that may vary anywhere from $25,000 to $75,000, depending on the kind of school and its reputation. Without the growth of the federal student loan guarantee program, would the cost have increased by such a substantial amount? As is the case with the student loan programs, the basic purpose of legislators got skewed in virtually every instance of government interference in private enterprise and industry, which led to waste, corruption, and price inflation. This is the case in almost every instance. If the United States government had not provided financial assistance to the majority of colleges and universities, these establishments would have been required to exercise greater caution in the management of their financial affairs and to engage in more intense competition with other educational establishments in order to enhance the quality of education that they provide to their graduates. the answer to the problem of the student loan It is the role of the educational institution to assume the financial responsibility for the procedure, and the United States government should be removed from the process. It is possible for smaller institutions to try to sell their student loans on the secondary financial market, such as car loans, whereas larger universities have substantial endowments that may fund a student loan program. Due to the fact that the educator would be giving loans, they would be practically required to make a wager on the future success of each student in order to repay the debt. With the passage of time, every educational institution would be required to implement a system of budgetary management and product quality, or else they would be compelled to shut down. describes the creator as saying, “phase ii…building on boldness.”
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