I love to look through articles on student loans that are in the popular media. Sometimes these are informative and sometimes they are over reactionary (this is the case more than anything). I’m not sure where to put this one:
Fox Business wrote an article in June asking whether the next big bailout is the student loan industry. You can read the article here.
This of course is referring to a bailout similar to the house and car manufacturing bailout. In many ways taxpayers already bail out student loans. After all if a loan is forgiven this is covered by money paid to the government. But it obviously wants to go further as the plan to have student refinance their student loans is proposed to be covered by taxes on the rich.
I often times wonder if its right to have others cover loans that a knowing person willingly took out. But I will leave my politics at the door. I found the article fascinating and worth considering. What do you think? Are student loans our next big bailout and if so how can we stop it? More importantly are there any lessons from the previous bailout we can learn to be more effective?
If anyone is interested, let’s start an intelligent discussion and remember play nice!