Hacker News Reader

This is why I'm so against the government forgiving education loans. All that will happen is the money will go to colleges, and they'll raise tuition.

Instead put the schools on the hook for the loans - if someone doesn't pay, well, it's the school that has to eat the cost.

View on HN

The US already has a 'loan forgiveness program' that works for every single loan _other_ than student loans, called "bankruptcy". It's worked for hundreds of years, and we used to allow it for college loans.

There is one difference: student loans that are being "forgiven" are being put to taxpayers, whereas in bankruptcy the loans are absorbed by banks that lent money (and to a lesser extent, to parties with outstanding debts, such as vendors).

You're against a particular kind of loan forgiveness, where it's assumed the schools are made whole. As you note, there's another kind of loan forgiveness where the obligations simply evaporate.

The schools are already whole; the schools aren’t the loan issuers for the loans at issue, the federal government is. The schools already got paid.

Reply on news.ycombinator.com