Bernie Sanders wants to unload debt onto taxpayers, and naturally, Ocasio-Cortez wants her debt canceled, too.
Carney: Bernie Sanders’ Plan Will Make the College Debt Problem Worse.
Senator Bernie Sanders released a bill Monday that would cancel all outstanding student debt. But it does little to stop the student debt problem from arising once again–and may even make it worse.
The Sanders bill would cancel all of the roughly $1.5 trillion in student debt for 44 million Americans, including debt owed by wealthy individuals, debt owed to private lenders, and debt owed to the federal government’s loan programs. It would also attempt to make college education at state schools free to students, paid for by a combination of state and federal spending.
By Senator Sanders’ estimate, the bill would cost approximately $2.2 trillion. But the cost could eventually be much higher because the bill largely leaves in place the current system of federal student lending, which means the next generation of college students could once again build up unsustainable levels of debt.
And that, in turn, will invite another round of debt forgiveness.
Sanders plan does not actually cancel college debt. It shifts the burden from former students to taxpayers. And going forward, far from canceling student debt, it lets current and future students continue to rack up debt–but now with the expectation that those loans will not have to be repaid because another round of forgiveness is likely in the offing. It does nothing to force colleges to hold down the cost of education to levels that students can be expected to repay in the future. MORE HERE