What would happen to future students, would they be entitled to loan forgiveness as well?
Inherent in this proposal is a belief that, going forward, the way we fund higher education in America needs to be fundamentally changed. 40 years ago, a higher education was obtained mostly through grants and scholarships with small amounts of student loans making up the difference. Today, student loans are the primary source of funding for school. As tuition rates continue to soar at more than twice the rate of inflation, more and more students necessarily have to borrow more and more money just to obtain a degree that no longer has the same value it once did. This is a recipe for disaster as it is inarguably unsustainable. Moreover, I recognize the “moral hazard” element to this proposal – why should future students feel obligated to repay their loans if everyone’s loans today were forgiven? As such, part and parcel of this proposal is that, going forward, fundamental changes to the way we fund higher education in this country need to be made.
