this is the problemYoung Americans are being crushed by student loan debt. Unfortunately, a new bailout proposal wouldn’t help them much in the long term.
On Monday, Sen. Bernie Sanders, I-Vt., and Rep. Ilhan Omar, D-Minn., introduced legislation to wipe out every dollar of student loan debt in the United States, eliminating it for roughly 45 million Americans. Additionally, the proposal would make public colleges and community colleges tuition-free.
In a press conference announcing the proposal, Sanders said, “The American people bailed out Wall Street. Now it is time for Wall Street to come to the aid of the middle-class people of this country.”
The reason schools keep raising their tuition is that students have easy access to federal student loans, and the government has a near-monopoly on the sector. Colleges know they can keep raising tuition without fear of losing students because federal loans serve as a guaranteed subsidy