wex-logo_1200x630-facebook.jpg


Homecoming is about to get more awkward. The federal government’s new student-debt program favors recent over older graduates, giving alumni one more thing to gripe about.

Announced in November, the program will forgive at least $108 billion in student debt in the coming years according to a November GAO report. And as a result, older education debtors are getting hosed at the expense of the younger borrowers.

Here’s how it works: According to complex variables, The New York Times reports, the program sets monthly payments as a percentage of a debtor’s income and repayment plans from the standard 10 years up to 25 years. After that, the taxpayer shoulders the remaining balance.

Essentially, the Obama administration has picked winners and losers by adjusting amortization and handing out debt amnesty. That’s great news for millennials who racked up the national average of $30,000 in college debt and graduated with an unimpressive gender studies degree. It’s also wrong.

Sure, student loans suck. More than most, this generation has been sold unrealistic dreams built on unsteady mountains of student debt. But forcing society to pick up the tab left over from university is fundamentally unfair. The alumni struggling responsibly with their own debt know this better than most.

The older generation, the ones who got real majors for real jobs, will struggle with the burden of student debt while life’s underclassmen get a pass. It’s already happening and it’s already breeding resentment.

Take Kristin and Jim Reed, for example. Now in their early sixties, the married couple went to school when Richard Nixon and Gerald Ford lived in the White House, borrowing $38,000 for their higher education. Decades later, they dipped into to savings to finally pay off the balance — a sum which ballooned to more than $117,000.

“I don’t think it’s fair that some people would get forgiven and not us,” Mrs. Reed told the Wall Street Journal. Finally retired, she still watches her husband clock long hours as an electrical engineer. “We did everything right.”

Meanwhile, more and more freshman enroll in more expensive, federally subsidized universities, taking on loans they’ll never be able to repay. And now they won’t have to worry about it.

Obama signs Cures legislation

Also from the Washington Examiner

The 21st Century Cures Act provides $6.3 billion in funding for medical research stretched out over a decade.

12/13/16 3:33 PM

Death, taxes and student loans used to be inevitable. The new program does away with the last factor. And it’s a textbook example of subsidized irresponsibility. It’s already splitting the alumni association apart.

Philip Wegmann is a commentary writer for the Washington Examiner.

Rex Tillerson nomination shines spotlight on Trump and Russia

Top Story

Tillerson has business ties to Russia that senators in both parties are sure to explore.

12/13/16 1:06 PM



Source link

About the Author:

Leave a Reply