Joseph A. Pechman Senior Fellow – Financial Studies, Urban-Brookings Tax Policy Center
A recently available Wall Street Journal article informs a startling story of the University of Southern Ca school that is dental who owes a lot more than a million dollars in pupil debt—a balance he’ll never ever completely repay. As he’s exceptional—only 101 individuals away from 41 million student-loan borrowers owe significantly more than a million bucks—his situation highlights the flaws in a student-loan system which provides graduate students and parents limitless usage of federal loans and large repayment plans. The effect: Well-endowed universities and well-paid, well-educated borrowers benefit at the cost of taxpayers much less students that are well-off.
While borrowers with big balances aren’t typical, they take into account a share that is growing of figuratively speaking. (mehr …)