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Notes -
At some point, student loans are mostly bad debt and bad debt does have to be dealt with. I'm curious what makes student loan forgiveness a 'disastrous' as opposed to merely sub-optimal policy.
Expected downstream effects. After the first round of forgiveness, universities will jack tuition prices at an even more exhorbitant rate than the last 50 years, blow the money on stupid amenities and inspid activism, while telling every potential student "It's free money! Just don't pay it back and tthe next time a Dem is in office it'll be forgiven!"
This is roughly correct. For the debt reform to work without a moral hazard, the part(ies) who profited most from the debt must be heavily punished.
One way to accomplish this would be to, instead of debt forgiveness, to allow former students to settle their debt with the proceeds of a lawsuit against their alma mater at the cost of their degree. Think your degree wasn’t worth the cost? Just return the defective goods…
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