Let’s talk about Student Loans for a moment. First, I believe if you take out a loan – you pay it back. Especially if the Government is providing tax deductions on the interest! (Which is done for those reporting less than $75,000 MAGI, or $140,000 MAGI for married filing jointly)

Well, it turns out that 60% of Loan Debt is owed by people making over $75,000 MAGI –

https://www.brookings.edu/blog/up-front/2020/10/09/who-owes-the-most-in-student-loans-new-data-from-the-fed/

Prior to President (Bill) Clinton, the Federal Government had NO student loan guarantees. In 2009 the Federal Government owned only $150Billion in Commercial Credit – in 2016 the number was over $1Trillion – due to student loans.

Why? – the “Affordable Care Act” (Obama Care?) Between 2011 and 2016 the number of student loans by Private Institutions dropped by 90% – the Federal Government took over lending to students and gave everyone a loan. (Can you say: “Get people dependent upon the Federal Government?)

Here is the kicker: “In September 2018, the U.S. Treasury Department revealed in its annual report that student loans account for 36.8% of all U.S. government assets.”

Compare this to a 2015 report that said all of the land owned by the Federal Government had an estimated value of: $1.8 Trillion – The US Government owns about 28% of the entire US Land.

So – lets look at this – with 14% of Student loans provided to “Parents” and 60% to people with higher MAGIs – that leaves only about 26% of Student Loans to individual who are able to deduct loan interest from their taxes.

BUT – the CBO (Government bookkeepers!) State that the Federal Government is losing between $100 Billion – $250 Billion per year on Student Loans which includes about $40 Billion in “Administrative Costs”

What? – The US Government has a $40Billion cost for managing student loans – and is losing money?

No wonder the Feds want to wipe the slate clean and start over – But will they? They will clean the slate only for those not paying! Those who have a high MAGI who don’t get deductions in the first place – will continue to pay. AND, they will end up paying double if the Feds wipe out the 26% of student loans that are a burden to the books.

Folks – this is Politics – and the Politicians won’t be talking about or doing anything unless there is some advantage for their return to office! Who are the voters? – Do they have jobs and pay taxes? – Or do they have student loans and can’t pay for the loans?

And for everyone that does not have a student loan – do you really want to pay taxes for those who borrowed money from a program that is costing you more on your taxes?

Sources:
https://www.federalreserve.gov/econres/scfindex.htmhttps://www.investopedia.com/articles/personal-finance/081216/who-actually-owns-student-loan-debt.asphttps://www.bea.gov/system/files/papers/WP2015-3.pdf https://fas.org/sgp/crs/misc/R42346.pdfhttps://www.cardrates.com/advice/student-debt-statistics/#:~:text=Student%20Loans%20are%20Associated%20with%20Higher%20Income&text=An%20analysis%20of%20the%20Federal,those%20without%20a%20bachelor’s%20degree.