Comment by pknomad

I should clarify. When I say "rewarding bad behavior" I mean it further incentivizes the universities to keep raising prices, faster. There are myriad of reasons why college costs goes up but the biggest driver is the inelasticity of college degree. College administrators can raise prices because they see that the market will bear them. If college administrators and students see that the government will forgive student debts (btw it's not even dischargeable through bankruptcy), then the administrators will charge higher prices ("don't worry prospective students, the government will forgive the debts!") and students will also include it in their calculus for college-decision making process ("maybe there will be another loan forgiveness down the road, I can definitely take the risk"). Think how Tesla and all these EV companies display the car price with the tax break. This is what I mean.