For graduate school, at private colleges, or to finance living expenses while enrolled as I wrote last week, Senator Warren’s proposal to write off student debt and offer free public college is expensive, regressive, and leaves many open questions about what will replace student loans for the millions of students that use them.
Joseph A. Pechman Senior Fellow – Financial Studies, Urban-Brookings Tax Policy Center
I will be sympathetic to today’s learning student loan borrowers—indeed, I’m outraged over the situation. It’s an outrage that the government that is federal loans to students at low-quality organizations even if we understand those schools don’t improve their profits and therefore those borrowers won’t be able to repay their loans. It’s an outrage that people make moms and dad PLUS loans towards the poorest families whenever we understand they nearly certainly will default and now have their wages and social security advantages garnished and their income tax refunds confiscated, as $2.8 billion was at 2017. It’s an outrage that people saddled a few million pupils with loans to sign up in untested online programs, that appear to have provided no labor market value. It really is an outrage which our financing programs encourage schools like USC to charge $107,484 (and pupils to blithely enroll) for a master’s degree in social work (220 % a lot more than the same program at UCLA) in a industry in which the median wage is $47,980.