18 Sep '11 16:00>2 edits
Originally posted by spruce112358Better decisions? Taking on debt is not necessarily a bad idea. It's a matter of the size of the debt service relative to the expected increase in income from having a better quality education.
Handing out free money is always popular. But it is unfair to the people who made better decisions and have no debt.
So basically you reward bad judgement and punish good judgement. What does that result in? People "learn" that bad judgement is profitable -- "It's OK to go into massive debt; as long as everyone else is doing it with me, the governmen out the banks was the same thing. They have "learned" that risky loans are not punished.
I have plenty of student debt, but I can easily afford it on my salary. If I had gone to a second rate college just to avoid debt, I'm pretty sure I wouldn't make even a quarter of what I make now.
You are correct that giving targeted transfers helps some at the expense of others, but I dispute your claim that people who took student loans made bad decisions or that people who didn't made prudent decisions.