Politicians as the Causes of the Problems in Student Loans in the United States

In this essay Thomas Sowell is taking the position that student loans have many problems that are caused by politicians. Politicians make student loans easy to get for everyone because voters will vote for them and there is a belief that there is a real need for student loans.

Politicians believe that we should help those struggling with the loans. One of the points made is that the average student loan for a public college after graduation is only $7,000, much less than a new car.

Sowell says “Even graduates with relatively modest incomes pay less than 10 percent their annual salary on the loan the first year”.

The problems come in when a student drops out of college; their income is still low. Another policy that brought in problems was that before 1978 only low income families could get student loans. After politicians allowed high income families to obtain student loans these families would put their previous college savings into a high interest yield account during college; afterword pocketing the difference between the loan and savings interest rates.

All of this has lead to people taking advantage of public resources, creating more “hype and hysteria” to keep taxpayers money flowing in.

Sowell has several good points here. High income families abusing student loans to make money off of them are a waste of taxpayer money. The students who do graduate and get that higher income should pay off their loans in a timely fashion. While Sowell brings out some good points he doesn’t address how we should resolve any of these issues.

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What is the solution to these problems? If he is going to accuse politicians of these problems than he should show some data supporting that it is indeed their fault.