To the Editor:
There is no question in my mind that President Biden’s forgiveness of college tuition will help many. I think there are unscrupulous universities and online content providers that have taken advantage of people, having them get loans that they cannot afford. ITT is a perfect example. I am sure they are not the only ones. I think there are other things that can and should be done to help solve this situation.
First, the Department of Education should investigate institutions that don’t provide the services that they promised to provide. Are there other organizations that have profited from the easy student loan debacle? Like ITT, they should have their certifications revoked. The numbers should be available to point to a college, university or online school that has a higher-than-normal rate of loans versus the ability to pay. These institutions should be held accountable for their predatory actions.
Second, people should be able to pay college loan debt with 529 funds. Currently, there is a $10,000 lifetime cap on the amount of student loans that can be paid with a 529 fund. This was enacted with the SECURE Act of 2019. Once a family starts putting money into a 529, it becomes easier to get used to this nest egg for future education. But it would also be incredibly valuable to those in debt to get the same benefit from this tax savings. Let’s help people help themselves by offering incentives for them to save and to pay down their own debt.
Brian Owens
New Palestine
