San Francisco Chronicle columnist Debra J. Saunders quoted Dr. Richard Vedder, Director of the Center for College Affordability and Productivity and Professor Emeritus of Economics at Ohio University, in an article on “Forgive and forget college debt.”
Dr. Richard Vedder
The article discusses an Obama administration decision to forgive as much as $3.5 billion in loans for students of the now-defunct Corinthian Colleges.
Richard Vedder of Ohio University’s Center for College Affordability believes federal loans have created an incentive for students to borrow more money than is prudent — a bad incentive that is compounded when “the consequences of making a mistake are less than they otherwise would be.” Federal aid also entices students into college when it may not be their best course. Ask any underemployed college graduate.
Vedder sees this loan forgiveness as “the first step toward moving toward free college for all.” It follows other administration actions to cap student-loan payments as a percentage of income and forgive unpaid balances after 20 years or less. Tell students they may not have to pay back the full freight, and they may feel free to borrow more. All hail “affordable” higher education.
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