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Economics-government finances-G-A

04 Jun

Those pushing the petition to abolish student loans also have a very interesting concept of economics. They say if President Biden signs an executive order forgiving student debt, it will not cost anything and won’t increase the national debt. Apparently people are buying it because quite a few have signed already. An executive order forgiving student loans will have far-reaching consequences. A loan is exactly that. It is a loan. The student borrows it, the loaning institution pays the college or university, the college pays their bills for teachers, staff, maintenance, utilities, etc. IForgiving the loan would ordinarily leave the loan institutions taking a loss, but the government has agreed to guarantee the loans so if the student defaults, the government (you and me) will pay off the loan. By forgiving the loans, the government is agreeing to pay them off and bill you and me. I worked summers and took out loans for the rest. It took me 10 years to pay off my college loans before I could go back to seminary. I served a church to help with expenses but it still took me 10 years to pay off my seminary loans. I worked hard in college and in seminary because I did not want to waste money on my education. Many today attending school paid for by Job and Family Services take classes very lightly and a lot of it is because they aren’t having to work for it. If students know they won’t have to pay for it, a lot of them will waste their time there. We already see a similar attitude in many high school students today.

 

 

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