Here's what a Trump or Biden plan will mean to student loan borrowers

LTC Eugene Chu Excellent Information!

This is what happens when the government "helps." In the mid to late 70's my Dad, who was retired was able to put my brother through 4 years of college and my sister through 7 years at the University of Arizona, without getting a loan.

The the government got involved. Government guaranteed loans and drove up demand. Too bad the politicians never picked up a book on economics and learned about supply and demand. Any competent 7th grader selling candy on the playground knows that if their is more demand than supply you can drive up the price.

If government wanted to make education affordable they should have been starting more land grant colleges. There are academics earning three times more teaching than they can make working in their field, and college presidents that have salaries bigger than the President of the United States.

Former Bryant University President Ronald K. Machtley made $6,283,616 in 2017. He stepped down in June 2020.

Johnson and Wales University's former Chancellor and President John J. Bowen made $5,363,616 in 2017. He retired in 2018.

Rensselaer Polytechnic Institute's President Shirley Ann Jackson made $5,155,038 in 2017.

The bigger future consideration is what risks will lenders be willing to take on.

Right now, all that commercial backed paper with student loans as collateral has "some" value. There are probably a lot of loans that SHOULD be written off that aren't that are also floating the balance sheets up.

Pull the rug from under that and there's a big risk for markets to react, and future loans simply not being given because lenders aren't interested in giving away depositors money.