One of the first things Joe Biden wants to do when he becomes president is to cancel all or part of the outstanding student debt, now totaling $1.5 trillion.
But there are two big problems with this plan.
First, canceling the debt doesn’t deal with the origins of the crisis: skyrocketing college tuitions, which are a result of bureaucratic obesity. If tuitions aren’t curbed, debts will soar again, as will calls for another round of forgiveness.
Second, is the issue fairness. Most Americans don’t go to college, so why should they subsidize those who do? Won’t debt cancellation also be a slap in the face to all those students and families who have paid off their loans? What about those who decided to go to public institutions instead of the more expensive private ones to avoid heavier costs? Were they foolish to be so prudent and responsible?
Steve Forbes is Chairman and Editor-in-Chief of Forbes Media.
Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers,
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Steve Forbes is Chairman and Editor-in-Chief of Forbes Media.
Steve’s newest project is the podcast “What’s Ahead,” where he engages the world’s top newsmakers, politicians and pioneers in business and economics in honest conversations meant to challenge traditional conventions as well as featuring Steve’s signature views on the intersection of society, economic and policy.
Steve helped create the recently released and highly acclaimed public television documentary, In Money We Trust?, which was produced under the auspices of Maryland Public television. The film was inspired by the book he co-authored, Money: How the Destruction of the Dollar Threatens the Global Economy – and What We Can Do About It.
Steve’s latest book is Reviving America: How Repealing Obamacare, Replacing the Tax Code and Reforming The Fed will Restore Hope and Prosperity co-authored by Elizabeth Ames (McGraw-Hill Professional).
Steve writes editorials for each issue of Forbes under the heading of “Fact and Comment.” A widely respected economic prognosticator, he is the only writer to have won the highly prestigious Crystal Owl Award four times. The prize was formerly given by U.S. Steel Corporation to the financial journalist whose economic forecasts for the coming year proved most accurate.
In both 1996 and 2000, Steve campaigned vigorously for the Republican nomination for the Presidency. Key to his platform were a flat tax, medical savings accounts, a new Social Security system for working Americans, parental choice of schools for their children, term limits and a strong national defense. Steve continues to energetically promote this agenda.
