As the 2020 election gets closer, the public has an important decision to make.  Either to continue transfer their wealth or hard-earned cash willingly to other entities or to make the right decision to stop it.  Needless to say that as a whole, the society, and certainly not particular individuals or institutions can make that decision.  Rather a collective decision.

There are pros and cons on any public policy decisions.  However, issues related to the student loan debt deserve in-depth analyses.  The Association has long shared its research and the results show that the problem is not about paying back the loan.  Rather, the intention errors or the systematic errors that have been induced into the system is the issue.  These intention errors are designed to benefit certain entities which have reduced the ability of the borrowers to pay-off their loans at a reasonable time.   These strategies are applied based on the ideas that the longer the loans are paid-off, the more milk can be produced from them, in term of interest charges, late fees and others.  Some may take the remaining of the loan balance to their grave.  It is pretty sad.

The systematic errors and moral hazard have been added intentionally to the system to benefit certain parties.  This is the root of the problems.  Asymmetric information and the power to make deviations in the whole system have enabled certain parties to make abnormal profit on the expense of others.  The whole industry has been distorted with lack of wisdom., i.e., the presence of moral hazard and systematic errors.   These errors goes uncheck, especially in a situation where check-and-balance has not been exercise by those institutions that supposed to do that.  Or perhaps, the grand collaboration intentionally done to distort the system has occurred.  Who knows?

Under such circumstances there is no way out to contain the issue.  But likely be possible through the implementation of an appropriate public policy.  This is one of the reasons why the issue of student loan debt getting worse everyday without the sign of easing.  That is because no current optimal public policy is available.  Or may be the executive branch does not think this is an issue or may not be their best interest.  Therefore, there is a minimal viable effort directed to find a pareto optimal solution.

However, the American public now has the golden opportunity to reverse the course.  But, the society as a whole has to make the right choice.  America, it is into your hand to solve the skyrocketing student loan debt is in-placed.  It is you, the American public that has the ability to make this important change which may have a life-time future financial impacts on everyone of you.  It is not up to someone or an institution to make the change.  Certain law makers in the Capitol Hill have supported this life-time opportunity.  However, they cannot make it happens without your participations.  The American public has to support them.

Happy election!