If a mail truck slams into your car and wrecks it, the government is going to pay for the damage even though it screws a bunch of people who didn't rear end your car. The reason why is that the government committed a wrong and damaged you.
Well, the government committed a massive wrong with the student loan and tuition problem and damaged a lot of people. It's not a "market failure." It's a screw-up entirely created by the government.
If you want to be fairer to people who paid off their loans, I wouldn't mind reimbursing them at least to a point. Just because you were able to afford something doesn't mean you didn't get screwed. Again, if the mail truck destroys Bill Gates's car, it's still going to pay him even though he can afford not to be paid. It's about the misconduct causing damage - not the financial status of the victim of the misconduct.
I also wouldn't forgive all debt. I'd determine what portion of the tuition was likely be caused by the crappy policy rather than normal market forces and forgive that. It's not a handout. It's compensatory damages.
Finally, you don't have to generally rob the taxpayer to finance the loan forgiveness program. Personally, I'd levy a tax on the institutions that benefited from the bad policy, which were the universities. I could be talked into taxing other institutions as well, but they're the most obvious.
And again, all of this is would be conditional on major reforms by the education and higher education systems.
Last edited: Apr 20, 2022