Looney’s area would be the fact people boost in borrowing from the bank (the total amount who has got prior to now come unborrowed) may head to “bills” broadly outlined, which results in a couple problems.
The original issue is fairness. Looney means that “the federal government will pay twice as much so you’re able to subsidize the fresh lease of a Columbia [University] graduate scholar than it will getting a decreased-money individual beneath the Area 8 homes discount system” because the fresh new graduate college student can be obtain up to $29,100000 a-year to have life style will cost you now wants much of the mortgage is forgiven. It’s very more than “twice just what a reduced-money unmarried mother that have several people should expect to acquire away from the Won Tax Borrowing (EITC) and you can eating press joint.”
“Definitely one college students you would like place and board,” states Looney, “however, very carry out almost every other Us citizens who are not into the school, who are not eligible to take out a federal loan to own living expenses, and generally never assume federal taxpayers to fund those costs. Could it possibly be fair you to government applications assist pay the lease out-of some Us citizens simply because they was college otherwise scholar children, not others?”