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Related Topics Obama on Student Loan Forgiveness
http://www.futureofcapitalism.com/2011/03/obama-on-student-loan-forgiveness
From President Obama's remarks yesterday at a Univision Town Hall:
George W. Bush started down this road with the Public Service Loan Forgiveness Program created in the College Cost Reduction and Access Act of 2007. President Obama went further down it with the provisions in his health care bill limiting student loan repayment to 10% of income with forgiveness after 10 years. It's hard to overstate what a bad idea this is. The effect will be to reinforce class divisions in America by encouraging students with loan obligations (the poorer ones) to enter lower-paying professions, so they have to pay less back and get their loans forgiven. Then their children will need government loans for college, too. It really says something about Mr. Obama that the "problem" of students choosing because of loan obligations to go work for investment banks or corporate law firms rather than non-profits is something he wants to spend federal money to address. If people are so desirous of entering lower-paying professions, let them work in the private sector for a few years, pay off their loans, and then quit for lower paying jobs. But why should those who work in higher paying professions by choice (with the longer hours and greater risk that those higher paying professions often entail) be taxed to subsidize the choice of others to work in lower paying professions? It's a slippery slope from this logic to a government order that all professions pay the same wage, so that no one should be lured away from teaching or "public service" by the temptation of higher wages in the private sector. by Ira Stoll | Mar 29, 2011 at 9:47 am Related Topics: Education, Income Inequality, Non-Profits, President Obama receive the latest by email: subscribe to the free futureofcapitalism.com mailing list Reader comments on this item
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