In other news, down is up.
White House Says: Student Loan Debt Good for the Economy
Well, the political class has a dismal record admitting mistakes. And a history of doubling down on bad ideas.
Their answer for the heroin epidemic of student loan debt is, more and cheaper heroin!
I guess, if you think high habit heroin addicts are good for the economy, that makes sense.
From Josh Mitchell’s Wall Street Journal story:
Its [the report’s] conclusion: “The main macroeconomic impact of student loans, particularly over the longer run, is via the boost to output and productivity form a more educated workforce.”
So, we (the taxpayers) should subsidize those who are going on to earn more than we do???
They are among society’s highest earners, thanks in large part to the degrees that the debt financed. They’re well-positioned to buy homes, and they’re helping improve the nation’s productivity because they learned skills that employers need.
Does not exactly answer my question, does it?
This part of the report focuses on those who get degrees, frequently, multiple degrees, in fields where you can still make money. (Not the legal field)
What About Dropouts?
You know, the ones who still owe student loan debt? And cannot get a job that makes enough to make payments on their student loan debt. Unless they live in their parents’ basement.
Lots of them take graduate school classes to kick the can down the road. Their undergrad student loans initial due date is postponed, as long as they are taking more classes.
Of course, this compounds their student loan debt problem, because interest usually accrues on the existing debt, and, is increased as they incur more student loan debt to finance the grad school classes.
Not a good strategy. One of those, borrow now, pay later deals that does not make sense long term.
And the dropouts are in worse shape, debt, and no degree. And a difficult, frequently impossible path to discharging student loan debt in bankruptcy.
Broken record time: that 1.3 trillion dollar student loan debt is NOT getting repaid, White House.
Stop pretending that it is.