creators.com opinion web
Liberal Opinion Conservative Opinion
Daily Editorials
21 Oct 2014
Poor Ebola Response Strains Credibility

The threat of an Ebola outbreak in the U.S. has exposed the truth that however dangerous a disease may be, … Read More.

21 Oct 2014
When 'Tolerance' Becomes Illiberal

Just this week, we took to these pages to voice our support for the growing tolerance that characterizes Americans'… Read More.

20 Oct 2014
Obama's Fabulously Wealthy Fan Club

President Obama just can't quit California. And his latest fundraising swing is ample proof of why. There's … Read More.

Student Debt and Bankruptcy

Comment

The idea behind bankruptcy laws is that both debtor and creditor benefit. The debtor can get on with life, mostly or entirely free of debt. The creditor can face the reality that what is owed will not be fully paid, and so also can move on.

The greatest personal debt problem for Americans today is the $1 trillion-plus owed for education. It halts careers and even the forming of new families. Money that might pay for children instead goes to student loan debt that can rise well above $100,000.

Part of the problem is that college costs too much. As we have noted, university systems employ more administrators than professors, a misapplication of resources supplied by higher tuition, meaning higher debt for many students.

Another big component of the debt problem is that Congress in 2005 made it nearly impossible for Americans to discharge college debt through bankruptcy, as they can in most cases with personal loans, credit card, automobile, business or other debt.

Sen.

Dick Durbin, D-Ill., is advancing a proposal that would let students more easily declare bankruptcy over education loans from private banks. However, according to the Wall Street Journal, "[t]he bill would not apply to federal education loans, which comprise more than 80 percent of the roughly $1 trillion in outstanding student debt in the U.S."

We believe Sen. Durbin's idea is a step in the right direction. But all student debt — including to the federal government — should be treated like credit card and other debt.

Moreover, in addition to reducing college administrative overhead to reduce tuition, what's needed is faster economic growth to give recent college graduates decent jobs so they can pay off their debts more quickly. The recent tax increases from the "fiscal cliff" likely made matters worse.

But at least Congress is starting to realize that students and graduates overburdened with debt need help.

REPRINTED FROM THE ORANGE COUNTY REGISTER

DISTRIBUTED BY CREATORS.COM



Comments

0 Comments | Post Comment
Already have an account? Log in.
New Account  
Your Name:
Your E-mail:
Your Password:
Confirm Your Password:

Please allow a few minutes for your comment to be posted.

Enter the numbers to the right:  
Creators.com comments policy
More
Newspaper Contributors
Oct. `14
Su Mo Tu We Th Fr Sa
28 29 30 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31 1
About the author About the author
Printer friendly format Printer friendly format
Email to friend Email to friend
View by Month
Brent Bozell
Ben Shapiro
Ben ShapiroUpdated 22 Oct 2014
Jacob Sullum
Jacob SullumUpdated 22 Oct 2014

21 May 2010 Climate Bill Would Strangle Economic Recovery

7 Feb 2014 IRS Should Hold off on Employee Bonuses

28 Jun 2012 Long-Term Solitary Confinement Is Cruel, Unusual And Expensive