Gene Czarnecki makes good points about resisting student loan forgiveness. (See link below to letter in The Register.) It seems a little known fact that more people default on loans with balances less than $5,000 than larger balances. This is likely due to the fact that smaller balances are due from students who did not complete their degrees while larger balances are due from students who completed post-graduate degrees like medicine and law and who have the ability to pay off their loans. So, if our government does anything to forgive student loans, we should consider forgiving only the first $5,000 rather than larger amounts.
Several years ago, as part of the stimulus package, Congress and the President agreed to cut student loan interest in half – temporarily. Like so many other temporary cuts, there is tremendous pressure to continue them. Take the Bush Tax cuts and the Social Security tax cut. Congress need to buck up and let all of these tax cut expire – on everyone. We have a tremendous budget deficit and debt. We are absolutely cheating our children and grandchildren. We must actually reduce our deficits – through a combination of significant spending cuts and letting the various tax cuts expire and by closing special interest loopholes in the tax code.