Mike Rowe reveals why he thinks student loan cancellation is a bad idea
TV host and writer Mike Rowe said he “does not support” the cancellation of the student loan, noting that it would mainly benefit the wealthy on a Facebook Monday. Publish.
The “Dirty Jobs” TV host also said he believed some students were “tricked into borrowing ridiculous amounts of money to buy degrees that never lead to a real job.”
“My reasons for opposing student loan cancellation are no secret. I have written at length on this page about the fundamental injustice of doing such a thing – especially for the millions of Americans who have paid their college debts and are doing it, ”Rowe said.
He continued, “I also said that student debt forgiveness would send a terrible message to the same universities that are already ripping off their clients with exorbitant tuition fees. Tuition fees will never come back to earth if we bail out those who do. borrowed more than they could repay. “
Rowe highlighted a December 10 New York Times report explaining how canceling student debt would disproportionately benefit the wealthy, citing a analysis from the Brookings Institution, a liberal think tank.
Progressive lawmakers have stepped up calls for the Biden administration to write off or write off student loan debt once he takes office, including New York Representative Alexandria Ocasio-Cortez and Massachusetts Senator Elizabeth Warren, who intends to forgive up to $ 50,000 by studying debt for households earning less than $ 100,000 and is offering some relief to households earning over $ 100,000.
Under Warren’s plan, however, 60% of U.S. households would only get 34% of the benefit, according to an April 2019. analysis by Brookings.
The richest 40 percent of U.S. households owe nearly 60 percent of outstanding school debt and make nearly three-quarters of payments, according to data released recently by the Federal Reserve Survey of Consumer Finances shows.
Meanwhile, the lowest 40% of households hold just under 20% of outstanding debt and make only 10% of payments.
Brookings’ analysis also raises the question of whether canceling student debt for some would be fair to those who have already spent years working to pay off tens of thousands of dollars in debt, which, like Warren and other lawmakers have mentioned it, can back to take other big steps, such as buy houses and departure families.
According to the Federal Reserve, there are about 45 million borrowers who owe about $ 1.6 trillion in federal and private student loan debt as of June 2020. That’s up from $ 250 billion in 2004.
“I pity all the young men and women who are struggling today under the yoke of a crushing student loan. I sincerely do so. You have most likely been sold with a merchandise bill. You have most likely been pressured by the part of your friends, parents or councils, counselor, to go to the ‘right’ school, “Rowe wrote.” … But it’s not my fault. Nor is it the fault of the American people. The fault is yours, as is the debt.
The TV host has donated millions of dollars through his charity, the Mike Rowe Foundation, to support those looking for work and training that does not require a college degree, such as plumbing jobs and d ‘electricity. Interested persons can apply for a “work ethic” scholarship through the foundation.