Of course the Obama proposal is just a naked pander for the youth vote and is consistent with Obama’s stated aim of “spreading the wealth around”. I say Obama backers are much more likely to be current and future student loan defaulters than Romney supporters; I doubt anyone would want to fade me on that. But to consider the proposal seriously for a moment:
The student loan process differs from others in that the likelihood of the borrower’s ability to pay back the loan is not a factor in whether the loan is granted in the first place or in setting the interest rate to be charged. So if student loan debt can be later made to disappear, thus stiffing taxpayers (i.e., me) on government loans or private lenders on private loans, while infuriating those who dutifully paid off their own student loans, then the likelihood of the student’s defaulting must be taken into consideration in the granting process.
How about this as the major factor – the relevance of the major to subsequent job prospects and ability to earn a wage that might actually be enough to pay off a loan. Pursuing a degree in science or technology – no problem. Engineering or math – no problem. Economics or business – no problem. Medieval French poetry, lesbian studies, or pop psychology – now we’ve got a problem. Want a PhD in feminist theory – pay for it in cash.
John M Greco