What's the point of the bailout without addressing the elephant in the room?

[OnlinePoker]

This will only benefit past loan takers. What will happen in the future as tuition, textbooks, housing, etc continue to go up? Even if every loan was paid off, ten years from now we would be right back in the same fix through new loan takers.

[ret5hd]

1. Username seems legit.

[eShirl]

2. The point is getting something done vs nothing.

[unblock]

3. Biden did more than just forgive loans. He's also increasing Pell grants,

Meaning current and future students should need less in loans. He's also making it harder for colleges to raise tuition. He also cut monthly payments in half.

Yes he didn't eliminate the entire problem forever in one stroke. But it's and excellent start, especially given the challenging political climate.

[former9thward]

5. How does the program make it harder for colleges to raise tuition?

From the White House website:

Meanwhile, colleges have an obligation to keep prices reasonable and ensure borrowers get value for their investments, not debt they cannot afford.

https://www.whitehouse.gov/briefing-room/statements-releases/2022/08/24/fact-sheet-president-biden-announces-student-loan-relief-for-borrowers-who-need-it-most/

That is the only sentence regarding tuition.

[unblock]

6. Right after that:

This Administration has already taken key steps to strengthen accountability, including in areas where the previous Administration weakened rules. The Department of Education is announcing new efforts to ensure student borrowers get value for their college costs.
---

Long term. I doubt these efforts will be very effective, but it's something.

[Johnny2X2X]

4. Biden overhauled repayment options

The pay as you earn options now are very affordable no matter what your income level.

[Bonx]

7. As long as there are guaranteed student loans

The cost of a college education will continue rising at many times the rate of inflation. Drowning those that swim too deep in bad waters.

[Fiendish Thingy]

8. What bailout?

You mean the student debt forgiveness?

If you do a little reading, you’ll find that, moving forward, repayment terms have eased considerably, and avenues for forgiveness have expanded as well.

In 10 years, the remaining balance for many of these new/current loans will also be forgiven, so we won’t be “right back in the same fix”.

[snowybirdie]

9. And how

Will we all buy houses and cars in the future? Everything will cost too much! We are doomed!!

[Demsrule86]

10. It wasn't a bailout.

[OnlinePoker]

11. bailout - a rescue from financial distress

What else would you call it?

https://www.merriam-webster.com/dictionary/bailout

[Wednesdays]

12. I wouldn't call it that, because I'm not a wingnut.

Thanks for playing.