FINANCIAL: The federal government’s student-loan debt-relief programs?

I fundamentally oppose any “debt relief” program on the grounds of “moral hazard”. In the future, loans will be taken out with the expectation of forgiveness.  
 
As a little L libertarian, the Gooferment does not have any funds that weren’t forceable taken from Taxpayers. Hence there should NOT be any FEDERAL loan program in the first place.
 
Further, you can correlate the rising tuition and rising student debt with the increasing Federal student loan involvement. 
 
Argh!

fjohn reinke
keene NH
 
 
TODAY’S QUESTION
Going back to our story above, what are your thoughts on the federal government’s student-loan debt-relief programs? Send your comments, which we may edit before publication, to10point@wsj.com
 

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READER RESPONSE
Responding to yesterday’s question on the federal government’s student-loan debt-relief programs, Bernard Levine of Oregon wrote: “Solve this whole costly mess with one simple reform. Require colleges to co-sign every loan to their own students. Then if a student defaults, the college is on the hook to pay. Which is only fair, since it was the college, not the student, that received the proceeds of the loan. And it was the college that promised, implicitly or explicitly, to make its students employable and prosperous.” Cole Aston of Missouri said: “Forgiving student debt is merely a short-term fix to a long-term problem. Tuition is sky-high because of federal-government backed student loans. Until we get rid of these government loan programs, universities will continue to inflate their tuition cost. We can’t be half-free market and half-socialist; we need to pick one or the other and stick to it.” And Slade Howell of North Carolina commented: “The federal government forgiving student debt is a wonderful idea. It is exciting to think that tax-paying, working Americans can have the opportunity to fund a social interlude for our youth… This may well go down in history as the most ingenious welfare system ever devised to procure votes.”

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