Is tax money used? Is anyone profiting from the program? Do colleges lose money? Please don’t make this political. I’d genuinely like to understand without all the talking point bullshit.
In: Economics
The IRS have different tax brackets.
People who finish a college degree are more likely to be employed than people who didn’t, and are more likely to be on higher tax brackets. People with college degree are also less likely to be in welfare programs.
The government gains more money and uses less money when people go to college.
But because tuition was rapidly rising, people were wary of taking student debt and fewer people were willingly to join college.
Government simply decided to step in and forgive college loan debts either directly or indirectly. Government intent is not exactly to forgive student debt but rather signalize to current HS students that college is fine and that they shouldn’t be wary of it. Helping people getting rid of debt is basically a nonintended effect of that policy.
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