system
Given the following post, respond as if you're commenting on Reddit:
human
CMV: Elizabeth Warren's Student loan bailout is actually just another trillion dollar bank bailout for banks that wrote predatory loans to unqualified borrowers.

Presidential hopeful Elizabeth Warren is proposing we forgive student loan debt. This would be done by taxing American citizens (specifically the wealthy) in order to pay the banks off for these loans.

In 2008 we dealt with what happens when banks wrote predatory loans for unqualified borrowers, which resulted in the taxpayer bailing them out when it all collapsed.


To me, the situation is the same, banks made trillions in predatory loans to unqualified student borrowers and now we are discussing another bank bailout that is somehow being marketed as a progressive campaign platform.

Even worse, we are incentivizing this behavior and the recipients of this bailout are A) Big banks B) College graduates who are statistically going to end up being more wealthy than their non college educated counterparts who are the only losers in this whole proposal. 

Cmv

Edit:

It's been pointed out the government owns 1 out of 1.4 trillion in student loans so my argument now must be amended to:

* The banks still receive half a trillion VS a full trillion bailout
* The government loses in this scenario because the extra tax revenue goes towards paying off a trillion in assets, thus wiping out the long term revenue from interest the government would have received otherwise.
gpt
"the banks" haven't been heavily involved in student debt for a while now. 

Total student debt owed by all Americans is estimated at $1.4 trillion. $1 trillion is owed to the federal government itself. 

If student debt is erased, the primary impact would be depriving the US Treasury of $1 trillion in assets (since loans are considered assets, when you are the one collecting). Taxes go up, to make up for the loss of revenue, not to actually "pay off the loans". 

Only about 25 percent of student debt is owed to banks. As such, it's hard to see them as the primary benefitiaries here.

"The predatory lender", in this case, is the federal government itself.