A $600 billion administrative moral hazard.
The premise behind federal student loan forgiveness is that it is “fair”: people struggling with student loans because of a down job market, personal troubles, or other of life’s inevitable strains should be “unburdened by what has been.” At the same time, debt relief administration problems include bureaucratic inefficiencies and the increasingly sizable cost, which must be passed on to other taxpayers who may not have been afforded the privilege of a college vacation, er, education. The effort also promises to amplify obvious government-created inequities by creating a destructive moral hazard.
Profligate Student Loan Payouts
A recent assessment of the Department of Education’s (DOE) proposed student loan forgiveness rules concluded the costs to US taxpayers could approach…
