Questions not yet being asked of Elizabeth Warren:
- Who will pay for the bill of giving free college to every American?
- How much more costly will “free” college become?
- What happened to the Democrats’ promise that student loans would be a moneymaker for government?
(Warren’s plan would cancel some $640 billion in student loans.)
Ms. Warren is touting her plan as a remedy for debt-laden Millennials and Gen-Zers. But the real recipients of her larges would be universities, explains Bright editors from the Federalist. Universities have taken advantage of federal spending to spawn Olympic-size diversity departments to go along with Olympic-size swimming pools to house and entertain their Olympic-size salaried administrators
And who in reality is paying for this? About two-thirds of Americans without four-year degrees, whose wallets will be tapped for debt forgiveness for the sons and daughters of the nation’s elite.
Harvard’s $38 Billion Tax Free Endowment
Warren claims yet another tax on the wealthy will pay for her scheme, but she might be better off looking for that cash a little closer to the problem, say, at Harvard’s totally tax-free $38 billion endowment.
At the Heritage Foundation’s The Daily Signal, Lindsey Burke continues:
Proposals to make college ‘free’ or to forgive vast amounts of student loan debt reward one entity more than any other: the universities.
Forgiving Student Loan Debt Will Reward Universities
Subsidizing the already-dysfunctional student loan system is not the solution. If we want to get serious about addressing the student loan issue, we must pursue structural changes to accreditation, along with innovation in financing through options like income share agreements. Making sure colleges have some ‘skin in the game’ also holds promise.
Get Washington out of the Student Loan Business
The federal government currently originates and services 90% of all student aid, leaving taxpayers greatly exposed when defaults occur or when loan forgiveness becomes more generous.
Elizabeth Warren’s proposal is a recipe for class resentment, warns the WSJ. It’s a subsidy for children who attend college at the expense of those who don’t.
Read more here.