By Steve Segner
In this crucial national election year, the issue of forgiving student loans under the Biden administration’s policy has become significant and widely discussed.
This policy has been met with both praise from loan recipients and criticism from those currently repaying their loans or who have already paid them off.
The historical use of government credit to promote government policies is a fascinating and often overlooked aspect of our past. In 1965, the federal government began guaranteeing student loans by banks and non-profit lenders, establishing the Federal Family Education Loan (FFEL) program.
This history resonates with the government’s earlier initiatives to encourage settlers to move west and start farms on previously Native American lands.
For instance, in 1804, France officially transferred its claim to the Louisiana Territory to the United States, effectively doubling the size of America.
This transfer made millions of acres of land available for future growth, with the aim of encouraging young adults to move west to federally owned lands and begin farming.
The government’s enactment of the Harrison’s Land Act of 1800 reduced the minimum amount of land that could be purchased and introduced a credit feature, allowing thousands of farmers to begin new lives but also instilling fear of the government that persists to this day in the West and Midwest.
Similarly, the government’s use of credit to encourage growth and upward mobility through the federal student loan programs, such as the Public Service Loan Forgiveness (PSLF) program, has had varied effects. While it has helped many, it has also caused resentment in others, echoing the mixed results of the historical land loan policies.
Looking back at history, it is clear that government lending policies can have both positive and negative consequences. Lessons from the past should guide our current policies, and considering alternatives such as providing free higher education in certain fields could be beneficial in avoiding burdening future generations with government debt.
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4 Comments
In many cases, having the government guiding and providing avenues for education for the benefit of the country, ANY country has merit. The history lesson is interesting and has some good points.
But like many government programs, the goal is lost for political or ideological gain. And that is a shame.
There is little to no responsibility on the part of most colleges. It is all about the money, tenure and in some cases indoctrination.
From 1978 to 2016
College tuition has risen 3.6 Times
Medical Costs 2.0 Times
Shelter 1.25
Energy 1.15
Food (.2)
New Vehicles (.5)
Apparel (.7)
Does anyone see a problem with this? How did this get so out of control. Simple – the government got involved, the WRONG WAY. They guarantee the student loans! So the universities know that they can charge what they want, no controls on costs, and who knows if there is collusion in the marketplace. And why do they care. The government guarantees that they will get paid. So the students get screwed. Big time.
Now we have a President that is trying to buy votes, although the Supreme Court says paying off student loans in illegal. Only the House of Representatives can authorize spending. That does not stop Biden, the chief law enforcement officer in the US according to the Constitution.
65% of the employment in the country is generated by small business, many who never went to college. They are being asked to pay these LEGAL debts. 30% of students drop out in the first year. Only 41% of students graduate in 4 years. Many carrying debt.
And as the writer of the article stated, what about the kids who worked through college, have paid their loans, and are now in the workforce. That does not fly on so many levels.
Am I against public education assistance? Of course not, it is critical to our country. But then you have to ask why is the US ranked 12th in its 2024 Competitiveness Report after ranking first in 2018.
the 1960s and 1970s, the United States had the best-educated young people in the world, or pretty close to it.
Competition is now coming back into many many states which creates better education systems, where the bad ones will fail, as it should be. Forcing kids into a system with no choice has been an abject failure. Public schools SHOULD compete with private schools, and public money should be available for both.
The core problem is that the government is funding college loans, but not controlling college costs. And universities (most of them) want no part of that.
In Switzerland, for example, ALL schooling is paid by the state. Councilors will sit with students which would be their junior high school year, and start understanding the direction the students want to go. There is also a public service or military component in the process – a good thing. The student decides on a trade school route, or college. The government is not into slackers – they want an educated productive population. That also reduces welfare by a factor of X.
The difference is that the government CONTROLS the price of that education. So you will never see the crazy increases that we have here.
There are ways to do this, but not like we are doing. It kills our kids, prevents them from buying homes and participating in society when they get out of these expensive universities.
I love the GOPs pick and choose handouts and favors to Corporate America….You dont even care about our youth, and they are the Future!
https://subsidytracker.goodjobsfirst.org/parent-totals
Just more hypocrisy, I got mine now go pound sand! Wow hate are kids, hate anyone who isnt a white Christian, hate everyone different for you….sad
“There are ways to do this, but not like we are doing. It kills our kids, prevents them from buying homes and participating in society when they get out of these expensive universities.“
Yeah and you’re probably an American gun nut too who thinks anyone and everyone white should carry 24-7 while our kid’s getting shredded with AR-15’s, AK-47’s, SKS’s etc as they sit in their way underfunded classrooms led by critically underpaid educators only to get your “hopes” and “prayers”! But that’s not killer our kids is it?
Priorities!
“There are ways to do this, but not like we are doing. It kills our kids, prevents them from buying homes and participating in society when they get out of these expensive universities.“
Yeah and you’re probably an American gun nut too who thinks anyone and everyone white should carry 24-7 while our kid’s getting shredded with AR-15’s, AK-47’s, SKS’s etc as they sit in their way underfunded classrooms led by critically underpaid educators only to get your “hopes” and “prayers”! But that’s not killing our kids is it?
Priorities!