Ok. I listened to the SOTU address and while I am not completely familiar with all the college credits and debt programs, I am in favor of the new ideas set forth by the Obama. However, I need a little help understanding this.
According to some article I have read, and from a discussion just moments ago with a coworker, the claim AGAINST the college debt forgiveness program are based around the idea that government involvement in colleges will see prices in tuition go up. More people will want loans and therefore prices go up.
In a bloomberg article there is this:
Representative John Kline of Minnesota, the top Republican on the House Education and Labor Committee, said such a plan may create new expenses for students.
"Making the federal government responsible for a larger share of student debt is likely to do nothing more than exacerbate high college costs," Kline said yesterday in an e- mailed statement.
Here is how i understand it, and I want to hopefully get some more feedback, or reading on the subject...but my opinion:
The idea is that if more people go to college, because of tax incentives and credit, there will be more people with advanced degrees (not everyone will major in engineering or business, but more overall will) and if that is the case, more graduates will have the ability to move into high paying jobs. If you have a higher paying job, you can pay your loans off more quickly and not need the Loan Forgiveness. One program requires the other to work.