If federal student loans worked then why was there federal student loan ‘forgiveness’?
I didn't say the current system is fantabulous. I'm saying that eliminating federal student loans, and hoping that employers will pick up the tab, will not work at all.
• Many employers these days won't hire candidates who don't have a college degree in the first place.
• Expecting an employer to foot the bill for a non-employee, and wait 2-4 years for that individual to graduate, is obviously not going to happen.
• Employers already do get tax breaks for tuition reimbursement. And yet, it's still a rare perk.
• The only companies that can afford to offer tuition reimbursement are huge corporations like Walmart -- and only a tiny percentage of employees take advantage of the program.
E.g. in 2021, less than 2% of Walmart's employees received tuition benefits. It doesn't help that it's only for full time employees, which means they don't have a lot of time for school (especially since Walmart can change those employee's schedules at will, making it even harder); they only offer tuition for 15 colleges, and that the benefit isn't available to salaried associates above the "market" level, or anyone with a BA. I.e. it's much more of a promise than a genuine benefit.
As to
why Biden offered loan forgiveness? Long story short: State governments have cut per-student spending on higher education for decades, which puts more of the cost burden on students. Also, more students are attending college, thus schools can demand higher fees, especially at competitive schools.
Meanwhile, the benefits of a college degree are still substantial -- higher lifetime pay, better jobs, better job opportunities, better benefits from employers, and so on. If anything, the need for a college degree is greater than in the past.
The
real solution is for the government to properly fund higher education. However, given that Republicans despise college (despite the fact that almost all Republican elected officials are college grads, many from elite private schools...) and prefer to cut off their own noses to spite their faces, Biden didn't really have much of an option. He was barely able to keep funding at current levels.