Thread by @CadgerGreg

1/ Democrats solutions on #studentloan crisis in my opinion is completely off base. This isn't a thread bashing the Democratic party so hold on if you are looking for a partisan based tweet. This is a systemic government, moral and economic problem.

2/ #1 the government, yes the government, is the primary reason it costs so much to go to college in the first place. When you put trillions of dollars into financial aid and student loan guarantees, our educational institutions are going to raise prices.

3/ The supply of money, the demand for education and the shifting of the equilibrium price based on subsidies causes rising costs. Many colleges are for profit institutions. Even non-profit colleges have revenue raising incentives. You need to fund research, pay professors,

4/ etc. If you have a honey pot of cash out there and people freely willing to take it and give it to you, an institution is going to take it. Less government money and a smaller pool to draw from equals lower costs.

5/ Free market competition for students would drive prices down as universities in order to attract able paying students would be forced to lower costs. Yes, free markets aren't perfect but they are great at establishing value.

6/ The second issue is the moral hazard as pointed out by @PeterSchiff. If you eliminate student debt, in theory you will have to eliminate all future government loan programs. Although, this would solve the issue of government intervention mentioned above, it would also create

7/ an environment where future students would not desire to fulfill their loan obligations based on the prior dismissal. Quite a dilemma where your initial intervention caused student enrollment and cost to increase and now the solution would drastically reduce the student .

8/ population by reducing the available resources. The kicker is the impact on the average American. Statistically 35-40% of Americans attend college. If you waive college debt than the 60-65% of Americans who didn't attend college, and as a group will make less money

9) because they are not college educated, will get to pay the debt of graduates who are earning more as a group. What? I have a plan which I feel might be a better solution. 1) Before lending Colleges should be required to do a cost-benefit analysis with the students defining how

10) much their education will cost and what their education will provide in wages based on that degree and it's relevance in the job market. Certain programs should cost more or less based on the amount of projected earnings. If a college wants to give out Liberal Art degrees

11/ they should cost less than Engineering degrees. 2) Cap the percentage of the total education costs that can be received via loans at 25 to 50%. 3) Offer colleges more tax incentives for hiring students, offer scholarships and reduced tuition for students who meet educational

12/ requirements but have family income limitations. 4) Allow student loans to be discharged in federal bankruptcy courts. Place the same types of requirements that are place on the waiver of tax debt. Require 3 years to pass before applying, demonstrate an attempt to pay.

13/ extrapolate out future income potential. review financial hardship. Allow a federal judge to decide if it is dismissable in full or partially. 5) Charge a tax to the very institutions whose greed and lack of scruples caused the issue. These institutions of education should be

14/ held responsible for their poor business practices. Taxpayers should not be asked again to resolve another systemic problem with government, Wall Street, etc. Parties which benefited should be responsible for the losses caused like any other institution. This tax should

15/specifically to be used to absorb the cost of defaults. This tweet is intended to start a larger discussion to find a reasonable resolution to student debt which will work. Please comment, criticize or add where necessary. TY @bp22 for raising the issue. #studentloan #debt