Sunday, June 8, 2014

Student Debt Refinancing Bill

A bill has been introduced in the Senate to permit the refinancing of student debt. In other words, the government is maybe, just maybe, considering taking a small step towards treating student debt like any other kind of debt.

Funnily enough though, I find myself in some amount of agreement with some of the criticisms that the Republicans have levied at the proposal. From al-Jazeera

Senate Republican leader Mitch McConnell of Kentucky criticized the Senate legislation – sponsored by Elizabeth Warren, D-Mass. – for not addressing college costs.
"This bill doesn't make college more affordable, reduce the amount of money students will have to borrow, or do anything about the lack of jobs grads face in the Obama economy," he said in a new release.

I think the most important of these is the point about cost. Even if debt can be refinanced or defaulted (not that you can discharge student debt in bankruptcy but just imagine), people will not be able let alone willing to afford the tuition rates we see in America for very long.

Nonetheless, I hope the bill passes, but am not holding my breath.

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