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New York Times depiction (7/24/19) of Bernie Sanders at a student debt rally with indebted former student Pamela Hunt. (Photo: J. Scott Applewhite/AP)
Why are Democratic candidates going on about student loan debt? Why, the problem is practically solved already!
That's the message of a piece in The Upshot (7/24/19)--the New York Times' project aimed at "examining politics, policy and everyday life in new ways"--written by Kevin Carey, who directs education policy at the New America foundation. (New America's higher education program is largely funded by Bill and Melinda Gates.)

"It's Easy to Forget, but a Program to Forgive Student Loans Already Exists," is the headline. The subhead clarifies: "Democrats are campaigning to fix an issue that is already starting to resolve itself for many teachers and other public servants."
After outlining proposals by Bernie Sanders and Elizabeth Warren for large-scale forgiveness of student loans, Carey writes:
What's strange about the new crop of proposals is that the Department of Education already has a public service loan forgiveness program, called PSLF, which President George W. Bush signed into law in 2007.
Sure, Carey admits, almost no one who applies for this program has their debts forgiven:
In the 18 months after borrowers with a decade of service in government or nonprofit jobs first became eligible in 2017, 73,554 people applied to have their student loans wiped out. And 73,036 were turned down--a rejection rate of 99.3 percent.
But that's a problem that's going to work itself out over time, Carey explains at great length--applicants will figure out over time how to make themselves eligible for this extremely convoluted program. The bottom line, writes Carey:
Nearly half of the $870 billion in outstanding Direct Loans -- the kind that are eligible for loan forgiveness -- is being repaid through income-driven plans, the kind that are eligible for loan forgiveness. And one in four American workers is in a job eligible for the forgiveness program.
So nearly half of $870 billion in debt is eligible for loan forgiveness, and one in four workers have jobs that qualify them for that program. If you do the math, that's very roughly $100 billion that could theoretically be forgiven--or about 6 percent of the $1.6 trillion in outstanding student debt.
The upshot, according to Carey: What are these candidates belly-aching about?
Democrats competing to help teachers and other public servants with loans may be about to spend hundreds of billions of dollars to fix a problem that is already on the way to being solved.
Or 6 percent of it, anyway.
Dear Common Dreams reader, It’s been nearly 30 years since I co-founded Common Dreams with my late wife, Lina Newhouser. We had the radical notion that journalism should serve the public good, not corporate profits. It was clear to us from the outset what it would take to build such a project. No paid advertisements. No corporate sponsors. No millionaire publisher telling us what to think or do. Many people said we wouldn't last a year, but we proved those doubters wrong. Together with a tremendous team of journalists and dedicated staff, we built an independent media outlet free from the constraints of profits and corporate control. Our mission has always been simple: To inform. To inspire. To ignite change for the common good. Building Common Dreams was not easy. Our survival was never guaranteed. When you take on the most powerful forces—Wall Street greed, fossil fuel industry destruction, Big Tech lobbyists, and uber-rich oligarchs who have spent billions upon billions rigging the economy and democracy in their favor—the only bulwark you have is supporters who believe in your work. But here’s the urgent message from me today. It's never been this bad out there. And it's never been this hard to keep us going. At the very moment Common Dreams is most needed, the threats we face are intensifying. We need your support now more than ever. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. When everyone does the little they can afford, we are strong. But if that support retreats or dries up, so do we. Will you donate now to make sure Common Dreams not only survives but thrives? —Craig Brown, Co-founder |
Why are Democratic candidates going on about student loan debt? Why, the problem is practically solved already!
That's the message of a piece in The Upshot (7/24/19)--the New York Times' project aimed at "examining politics, policy and everyday life in new ways"--written by Kevin Carey, who directs education policy at the New America foundation. (New America's higher education program is largely funded by Bill and Melinda Gates.)

"It's Easy to Forget, but a Program to Forgive Student Loans Already Exists," is the headline. The subhead clarifies: "Democrats are campaigning to fix an issue that is already starting to resolve itself for many teachers and other public servants."
After outlining proposals by Bernie Sanders and Elizabeth Warren for large-scale forgiveness of student loans, Carey writes:
What's strange about the new crop of proposals is that the Department of Education already has a public service loan forgiveness program, called PSLF, which President George W. Bush signed into law in 2007.
Sure, Carey admits, almost no one who applies for this program has their debts forgiven:
In the 18 months after borrowers with a decade of service in government or nonprofit jobs first became eligible in 2017, 73,554 people applied to have their student loans wiped out. And 73,036 were turned down--a rejection rate of 99.3 percent.
But that's a problem that's going to work itself out over time, Carey explains at great length--applicants will figure out over time how to make themselves eligible for this extremely convoluted program. The bottom line, writes Carey:
Nearly half of the $870 billion in outstanding Direct Loans -- the kind that are eligible for loan forgiveness -- is being repaid through income-driven plans, the kind that are eligible for loan forgiveness. And one in four American workers is in a job eligible for the forgiveness program.
So nearly half of $870 billion in debt is eligible for loan forgiveness, and one in four workers have jobs that qualify them for that program. If you do the math, that's very roughly $100 billion that could theoretically be forgiven--or about 6 percent of the $1.6 trillion in outstanding student debt.
The upshot, according to Carey: What are these candidates belly-aching about?
Democrats competing to help teachers and other public servants with loans may be about to spend hundreds of billions of dollars to fix a problem that is already on the way to being solved.
Or 6 percent of it, anyway.
Why are Democratic candidates going on about student loan debt? Why, the problem is practically solved already!
That's the message of a piece in The Upshot (7/24/19)--the New York Times' project aimed at "examining politics, policy and everyday life in new ways"--written by Kevin Carey, who directs education policy at the New America foundation. (New America's higher education program is largely funded by Bill and Melinda Gates.)

"It's Easy to Forget, but a Program to Forgive Student Loans Already Exists," is the headline. The subhead clarifies: "Democrats are campaigning to fix an issue that is already starting to resolve itself for many teachers and other public servants."
After outlining proposals by Bernie Sanders and Elizabeth Warren for large-scale forgiveness of student loans, Carey writes:
What's strange about the new crop of proposals is that the Department of Education already has a public service loan forgiveness program, called PSLF, which President George W. Bush signed into law in 2007.
Sure, Carey admits, almost no one who applies for this program has their debts forgiven:
In the 18 months after borrowers with a decade of service in government or nonprofit jobs first became eligible in 2017, 73,554 people applied to have their student loans wiped out. And 73,036 were turned down--a rejection rate of 99.3 percent.
But that's a problem that's going to work itself out over time, Carey explains at great length--applicants will figure out over time how to make themselves eligible for this extremely convoluted program. The bottom line, writes Carey:
Nearly half of the $870 billion in outstanding Direct Loans -- the kind that are eligible for loan forgiveness -- is being repaid through income-driven plans, the kind that are eligible for loan forgiveness. And one in four American workers is in a job eligible for the forgiveness program.
So nearly half of $870 billion in debt is eligible for loan forgiveness, and one in four workers have jobs that qualify them for that program. If you do the math, that's very roughly $100 billion that could theoretically be forgiven--or about 6 percent of the $1.6 trillion in outstanding student debt.
The upshot, according to Carey: What are these candidates belly-aching about?
Democrats competing to help teachers and other public servants with loans may be about to spend hundreds of billions of dollars to fix a problem that is already on the way to being solved.
Or 6 percent of it, anyway.