Student Loan Forgiveness Is Complicated, Because This Is America

Patching the student loan system is just the latest chapter in our long, sorry history of making things hard. In doing so, we confuse the very people we’re trying to help: the young, the old, the sick, the people without much time because they’re working hard to make ends meet.

In some ways, this is a feature of federalism. The U.S. government helps pay for or subsidize unemployment insurance, Medicaid and 529 college savings plans. States, however, have rights. And so the size of your unemployment check depends on where you live, your state can refuse federal Medicaid funds that could help you have more health care and there are dozens of 529 college savings plans with different tax breaks — or none at all.

We also like markets and plenty of choice. Politicians, policy wonks and product managers spend decades creating or navigating laws and regulations, and marketplaces emerge accordingly.

But then we get a result like the one we have in retirement savings. Have yourself a 401(k) or a 403(b) or a 457 depending on where you work, or all three over your next three jobs. You can invest money in a T.D.F. or possibly an R.E.I.T. but probably not an E.T.F., and don’t forget to check for the E.S.G. options. Or maybe you’d like one of the many flavors of I.R.A.s, like an S.E.P. or (you really can’t make this stuff up) a S.I.M.P.L.E. one.

Article source: https://www.nytimes.com/2022/09/03/your-money/student-loans-personal-finance.html