{"id":49703,"date":"2019-10-10T12:51:54","date_gmt":"2019-10-10T19:51:54","guid":{"rendered":"http:\/\/world.edu\/?p=49703"},"modified":"2019-10-10T12:51:54","modified_gmt":"2019-10-10T19:51:54","slug":"10000-word-article-on-student-debt-cancellation-misses-the-critical-valid-reason-to-do-it","status":"publish","type":"post","link":"https:\/\/world.edu\/10000-word-article-on-student-debt-cancellation-misses-the-critical-valid-reason-to-do-it\/","title":{"rendered":"10,000 word article on student debt cancellation misses the critical valid reason to do it"},"content":{"rendered":"<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-49704\" src=\"https:\/\/world.edu\/wp-content\/uploads\/2019\/10\/debtforgiveness.jpg\" alt=\"\" width=\"680\" height=\"622\" srcset=\"https:\/\/world.edu\/wp-content\/uploads\/2019\/10\/debtforgiveness.jpg 680w, https:\/\/world.edu\/wp-content\/uploads\/2019\/10\/debtforgiveness-250x229.jpg 250w\" sizes=\"(max-width: 680px) 100vw, 680px\" \/><\/p>\n<p>I\u2019ve been hearing people seriously talk about cancelling student loan debt for at least a decade, probably more. Granted, almost everyone who\u2019s for it has student debt, and most everyone against it doesn\u2019t have student debt, so I appreciate conflict of interest here\u2026but this is ad hominem, there are valid reasons both for and against it.<\/p>\n<p>(Disclosure: I never had student debt; this is not a boast, as I went to college in an era where even graduate school tuition was under $1,000 a semester, where any kid with a $100 lawnmower or gardening tools could make $200 a week if he was willing to work hard\u2026those days are long over. I am, of course, pro-cancellation, at the risk of getting ahead of myself.)<\/p>\n<p>A recent article, a <a href=\"https:\/\/www.unz.com\/article\/student-debt-cancellation-a-good-idea-and-a-political-hoax\/\">very long article,<\/a> has many good pieces of information on it\u2026but misses a really important, damning, argument against forcing people to pay their student loans. Let\u2019s look at some highlights:<\/p>\n<p><em>With the U.S. student debt fiasco now approaching <a href=\"https:\/\/studentloanhero.com\/student-loan-debt-statistics\/\">$1.6 trillion and 45 million borrowers.<\/a><\/em><\/p>\n<p>The above figures are fair enough, although both are miscounted by around 10%: quirks in the accounting rules allow for many loans to not actually count while the students are in school (this also allows <a href=\"https:\/\/world.edu\/campus-criminality-40-of-debtors-werent-educated-about-loans\/\">for about a quarter of students to not even know they have loans<\/a>\u2026how this high a percentage doesn\u2019t raise suspicions of fraud is beyond me).<\/p>\n<p>In any event, the article is mostly pro-cancellation because the inevitability of it: most borrowers are fundamentally incapable of every paying it back. The article neglects to ask how that could be (again, one should suspect fraud here, see also the housing crash of 2008).<\/p>\n<p><em>After much searching, I was able to find a few sensible voices in the wilderness\u2026<\/em><\/p>\n<p><em>Alas, he didn\u2019t find me, which is saddening.<\/em><\/p>\n<p><em>Taking a broader approach to this looming decision, the major themes of this essay are:<\/em><\/p>\n<p><em>\u00b7 Weak Arguments against Debt Cancellation from the \u2018Right\u2019<\/em><\/p>\n<p><em>\u00b7 Weak Arguments for Debt Cancellation and \u2018Free\u2019 College from the \u2018Left\u2019<\/em><\/p>\n<p>I won\u2019t waste time addressing the weak arguments one way or the other, but it\u2019s high time I address the main, primary, argument for cancellation:<\/p>\n<p>Most of higher education is fraudulently sold. From \u201cYou\u2019ll earn a million more dollars if you earn any degree\u201d to \u201cYou must learn all 23 gender names to do well in our Progressive Society,\u201d too much of higher ed has been fraudulently misrepresented.<\/p>\n<p>By definition, if a college graduate can\u2019t earn enough from his degree to pay back the loan on his degree, he has a case for fraud. Trouble is, so many graduates fit that description that it\u2019s not economically viable to go case-by-case, it\u2019ll simply be cheaper to have a simple student debt jubilee, cancelling it all.<\/p>\n<p>Somehow this huge, deep article, never addresses the fraud aspect. In every other contract, if one party commits fraud and doesn\u2019t uphold his end of the agreement (in this case, provide an education), then other party is not legally obligated to uphold his end, either (in this case, pay back the loan for the education).<\/p>\n<p>Of course this forgiveness should come with an important string attached: no more student loans, at least none provided by the Federal government. If private banks want to engage in such things, that\u2019s their right\u2026but the government should no leeway in enforcing such loans, which should again be clearable via bankruptcy (like most every other loan).<\/p>\n<p><em><strong>Locally funded<\/strong> <a href=\"https:\/\/www.csmonitor.com\/USA\/Education\/2015\/0625\/Four-reasons-community-colleges-are-on-the-rise\">Community Colleges<\/a> now attract far more students than even a generation ago.<\/em><\/p>\n<p>I should note the author doesn\u2019t work in higher ed, and so is utterly unaware of the immense fraud (or of accreditations role in same). Similarly, he\u2019s unaware of the breathtaking corruption of many community college systems, and so often pushes them as a \u201ccheaper\u201d alternative. I suppose they are, in much the same way as \u201cvaping\u201d is safer than smoking tobacco, and cheaper if you use bootleg cartridges! (In no way should this be taken as a recommendation for vaping, and regular readers of my blog know how extensively and thoroughly I\u2019ve documented the fraud of community college.)<\/p>\n<p><em>From a cursory overview, it would seem that the <strong>government<\/strong> and <strong>non-profit<\/strong> sectors have issued at least as much or possibly more <strong>false marketing<\/strong> to keep students trapped in debt than their much smaller <strong>for-profit<\/strong> college counterparts, who brought in only $16 billion of the $649 billion annual haul for U.S. colleges and universities. In other words, the too-pure-for-profit schools reap fully<strong> 97.5%<\/strong> of the total college and university income stream.<\/em><\/p>\n<p>The above is perhaps the most useful side-tidbit on the whole massive piece. The government shrieks and points at \u201cfor profit\u201d schools for stealing the student loan money, scrutinizing them to a high degree\u2026but only 2.5% of higher ed\u2019s revenue comes from those types of schools.<\/p>\n<p>I assure the gentle reader that our state universities\/community colleges get the lion\u2019s share of the remaining 97.5% of revenue\u2026and almost no scrutiny whatsoever about where that money is going.<\/p>\n<p><em>To that extent, it was also odd to see so many \u201clibertarian\u201d critics of centralized banking line up with Wall Street for wanting to keep soaking students with interest payments on loans that banks largely pulled from thin air.<\/em><\/p>\n<p>I really wish this guy had found me. I certainly lean Libertarian (acknowledging several critical failings, while appreciating it lacks the mass-murderous track record of prevailing political philosophies).<\/p>\n<p>Anyway, I\u2019m libertarian, and I would assure him that libertarian beliefs absolutely allow \u201cfraud\u201d as a legitimate reason not to honor a contract. And I reiterate: there are wide swaths of fraud in our higher education system, and not merely in the for-profit sector.<\/p>\n<p>Another fun tidbit:<\/p>\n<p>Total U.S. college revenue was a staggering <a href=\"https:\/\/nces.ed.gov\/programs\/coe\/pdf\/coe_cud.pdf\">$649 billion<\/a> for the Fall 2016 to Spring 2017 school year, up <strong>14.5%<\/strong> from two years prior. Over four-fifths of that income stream comes from government, institutional and private student <a href=\"https:\/\/research.collegeboard.org\/trends\/student-aid\">loans and grants<\/a> (<strong>$253 billion<\/strong> per PDF page 9), plus <a href=\"https:\/\/www.unz.com\/article\/student-debt-cancellation-a-good-idea-and-a-political-hoax\/#usgs302\">direct subsidies<\/a> for state-run colleges and local community colleges (about <strong>$300 billion<\/strong> in FY 2018, ignoring the $11 billion overlap from state grants).<\/p>\n<p>The gentle reader should keep the above in mind: our higher education system was raking in over 7% more each year in the years above\u2014that\u2019s the most recent data, but there\u2019s little reason the trend line has reverse much in the last year or two. And yet with every slight downturn, the \u201cleaders\u201d of higher ed shriek how they\u2019re running out of money.<\/p>\n<p>They\u2019re spending that extra money, the state schools anyway, with wild abandon.<\/p>\n<p>This is a massive article, but I\u2019ve hit the highlights above. Bottom line, however, what people need to know about student loan debt forgiveness is pretty simple:<\/p>\n<p>We should do it because higher education fraudulently provided \u201ceducation\u201d in exchange for that loan money.<\/p>\n<p>I\u2019m sure there are exceptions, plenty of them, even, but in this case widespread forgiveness is just the most efficient way to do it. Shut down the Federal student loan scam as well, and it\u2019s all good. Don\u2019t do that shut down, and it\u2019s all bad.<\/p>\n<p>You don\u2019t need 10,000 words for that.<\/p>\n<p><a href=\"http:\/\/www.professorconfess.blogspot.com\/\">www.professorconfess.blogspot.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I\u2019ve been hearing people seriously talk about cancelling student loan debt for at least a decade, probably more. Granted, almost everyone who\u2019s for it has student debt, and most everyone against it doesn\u2019t have student debt, so I appreciate conflict of interest here\u2026but this is ad hominem, there are valid reasons both for and against [&hellip;]\n&hellip; <a href=\"https:\/\/world.edu\/10000-word-article-on-student-debt-cancellation-misses-the-critical-valid-reason-to-do-it\/\" class=\"more\">learn more&rarr;<\/a><\/p>","protected":false},"author":33,"featured_media":49704,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[29],"tags":[12565],"coauthors":[],"class_list":["post-49703","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-higher-education","tag-student-debt"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>10,000 word article on student debt cancellation misses the critical valid reason to do it - World leading higher education information and services<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/world.edu\/10000-word-article-on-student-debt-cancellation-misses-the-critical-valid-reason-to-do-it\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:locale\" content=\"en_US\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:type\" content=\"article\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:title\" content=\"10,000 word article on student debt cancellation misses the critical valid reason to do it - World leading higher education information and services\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:description\" content=\"I\u2019ve been hearing people seriously talk about cancelling student loan debt for at least a decade, probably more. Granted, almost everyone who\u2019s for it has student debt, and most everyone against it doesn\u2019t have student debt, so I appreciate conflict of interest here\u2026but this is ad hominem, there are valid reasons both for and against [&hellip;]\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:url\" content=\"https:\/\/world.edu\/10000-word-article-on-student-debt-cancellation-misses-the-critical-valid-reason-to-do-it\/\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:site_name\" content=\"World leading higher education information and services\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"article:published_time\" content=\"2019-10-10T19:51:54+00:00\" class=\"yoast-seo-meta-tag\" \/>\n<meta property=\"og:image\" content=\"https:\/\/world.edu\/wp-content\/uploads\/2019\/10\/debtforgiveness.jpg\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta property=\"og:image:width\" content=\"680\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta property=\"og:image:height\" content=\"622\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"author\" content=\"Kevin\" class=\"yoast-seo-meta-tag\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:data1\" content=\"Kevin\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" class=\"yoast-seo-meta-tag\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" class=\"yoast-seo-meta-tag\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/world.edu\\\/10000-word-article-on-student-debt-cancellation-misses-the-critical-valid-reason-to-do-it\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/world.edu\\\/10000-word-article-on-student-debt-cancellation-misses-the-critical-valid-reason-to-do-it\\\/\"},\"author\":{\"name\":\"Kevin\",\"@id\":\"https:\\\/\\\/world.edu\\\/#\\\/schema\\\/person\\\/42c1c1d5ff7ffbdf0bd50ed94c6ae6ee\"},\"headline\":\"10,000 word article on student debt cancellation misses the critical valid reason to do it\",\"datePublished\":\"2019-10-10T19:51:54+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/world.edu\\\/10000-word-article-on-student-debt-cancellation-misses-the-critical-valid-reason-to-do-it\\\/\"},\"wordCount\":1220,\"image\":{\"@id\":\"https:\\\/\\\/world.edu\\\/10000-word-article-on-student-debt-cancellation-misses-the-critical-valid-reason-to-do-it\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/world.edu\\\/wp-content\\\/uploads\\\/2019\\\/10\\\/debtforgiveness.jpg\",\"keywords\":[\"student debt\"],\"articleSection\":[\"Higher Education\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/world.edu\\\/10000-word-article-on-student-debt-cancellation-misses-the-critical-valid-reason-to-do-it\\\/\",\"url\":\"https:\\\/\\\/world.edu\\\/10000-word-article-on-student-debt-cancellation-misses-the-critical-valid-reason-to-do-it\\\/\",\"name\":\"10,000 word article on student debt cancellation misses the critical valid reason to do it - 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