Lol, you mean the same tax payers who also are or who did go to college and used the very same loans? Just how much money do you think "tax payers" would be losing with such a policy, after you factor in the potential gains in the market from the extra money people will have in their pocket?
Your "reason" is bullshit and you know it. I do love your new, "but the poor government is losing money" tripe, as if money saved from less government spending ever went back to the people. Are you really this stupid?
Look up DoE historical Cohort Default Rates by vintages of when the loans entered repayment. The problem has gotten much worse in the last 10-15 years for students that exited school just before and after the crisis. The only reason why it is going down now is because a huge % of students are on alternative payment plans.
If you look at household formation, percentage of 20-30 year olds living at home, new car sales to the same demographic, if you talk to other lenders such as auto lenders, if you look at small business formation of that cohort, you find that there are sweeping changes to how the generation that graduated just after the .bombs forward can get loans and progress in life.
Why? Because college education coats have skyrocketed. When I went to school it cost 10-12k all in, tuition, books, meals, housing, and that was in the late 90s. Same school now costs 24k 15 years later. For somebody getting a psych degree, 20k in loans (assuming a job in school and family help or scholarships like I had) isn't horrible, you can support that. However, now that same student needs double that amount, or more.
And now, if they fail out in soph or junior year, their defaulted amount is far higher since they don't have a degree.
And going to grad school makes it far worse since there are very high, or no, borrowing caps. Want a master's in psychology? Sure, borrow another 50k, and get no benefit. Still become a social worker.
And we feed kids this lie of everybody has to go to school. Blue collar jobs suck. Trades suck. So many go and fail. Or worse, go and graduate but find no good jobs on the back end. All we get from our "leaders" is that Blue Collar workers feel "uncomfortable" and need to get used to the "new economy" where jobs are shipped overseas, H1B and H2Bs take over jobs, and the college degree you are stuck paying $50k in loans on will get you no more than some shitty service job while you're stuck paying your amount on IBR/PAYE/REPAYE for 25 years till the government forgives you, in the meantime you won't buy a house, or start a family, because you can't live on whatever is left. You'll be dismissed by the "leaders" and derided as "know nothings".
Keep in mind, 50% of the population has below average intelligence. They need jobs and as long as we are importing millions of illegals, H1Bs, H2Bs, and offshoring whatever we can, they will not be able to succeed to the extent they used to. Our "leaders" have fucked them.
