Despite questions about whether he has the authority to do so, President Biden has announced a plan to forgive $10,000 worth of student loan debt for those earning under $125,000 a year. In the case of Pell Grants, that amount doubles to $20,000 forgiven. Though those who see their debts decrease will benefit, what are the costs? The money is owed to the government, and it just chooses not to collect. True, however, it turns a loan into a subsidy. All those people who did not go to college are now having their tax dollars pay the bills of those who did. Moreover, those who go to college - on average - earn much more than those who do not. Sounds like a wealth transfer from the lower end of the income scale to the higher end. Now everyone has college debt.
Adults took out loans that they agreed to repay. That many of them pursued fields that would not result in high paying positions after they graduated does not change that. Perhaps a law should be passed that required colleges to provide projected income based on earned degree before the student starts accumulating debt. The university already has the money and doesn't much care what happens to the student who earned a bachelor's in underwater basketweaving. Make the university responsible for debts that their graduates cannot repay.
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