Using public funds to pay for a certain group of people's debt is like using public funds to pay for someone's private/personal debt. Why don't we pay for people's mortgage and car loans while we are at it then? The problem is education should be a public/common service and impoverished households should be subsizied by the government, preventing from going under student loan in the first place.
I don't know much about the details of the proposed programme. It has some requirements as to who can benefit from it, which is similar to what I suggested. It says "
According to a Department of Education analysis, the typical undergraduate student with loans now graduates with nearly $25,000 in debt." This is not a very large sum, an average household should be able to pay back this debt.
https://www.whitehouse.gov/briefing...t-loan-relief-for-borrowers-who-need-it-most/
Who is providing the loans by the way? If private banks provided the loans, it would be a problem for the banks as well if people couldn't pay the loan back, so in a sense government is bailing out the banks as well using public funds. In other words, they are transferring public funds to private banks.
Yes, they should find out the root cause why they had to bail out banks, corps or students in the first place and deal with the root cause so it won't come to that again. The programme in the link says cost of education has increased 3-fold since 1980s discounting inflation. Probably because the government have underreported the inflation. The real problem is that governments since 1980s have kept printing excess dollars, which is the root cause of inflation. If they had been responsible, it wouldn't have come to that.
This is FED's M2 money supply chart since 1980s. Blue line is the Money supply. I plotted the red line to show you the natural slope it should've followed, which would take it to 8 Trillion USD today, whereas the actual Money supply is around 22 Trillion USD.
22/8 =around 3x increase in money supply since 1980s. More money going around means more demand for goods and assets, which means you now have to pay 3x the amount of USD for a house/car/service that you could buy for 1x USD in 1980. Of course they won't mention that cause they and their corporate collaborators are the ones pocketing that increase in the money supply while average Joe gets poorer and poorer.
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