Saturday, November 3, 2012

Nick Gidwani: Obama and Student Loans: Income-Based Repayment

In 2010 we started an overhaul on healthcare with Obamacare. I think it's time to do something similar with our education system. The Huffington Post article by Nick Gidwani, linked above, starts the conversation off and points us in a direction. In it he describes our current detrimental situation and steps that have been taken by the president to rectify the situation.

The steps basically is a tighter form of student loan forgiveness--a cause I believe in for obvious personal reason, but one that I realize is rife with problems; the largest being where would we get the money to do that and what lesson do we learn by doing it. The latter of the two problems is what Gidwani caps his article off with and he's right.

Student loan forgiveness, or leniency as the College Cost Reduction and Access Act referenced in the article would closer resemble, would only relieve the immediate problem and only a narrow slice of it at that. The immediate problem is that college cost is getting high, and that's not including the fact that it has become harder to pay for college due to stagnant pay and rising cost of living. The article suggests that making it somewhat easier to pay loans back and cancel them decades down the line causes them to also look more attractive to potential students. This is bad because isn't out problem that too many college students and graduates are saddled with debt that they are struggling to repay. Not only that I've seen several articles connecting rising college tuition with the increase of loan acquistion. Again Gidwani is right. This is "a conversation n we need to have."

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