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Fast Writers > Solved Questions > D5

D5

access_timeAugust 22, 2020
perm_identity Posted by Alex Tutor
folder_open Solved Questions

When questioned about her plan to forgive student loan debt, then presidential candidate Elizabeth Warren was confronted by a man who said that he saved all his money for his daughter’s college education so she wouldn’t need to take a loan.  He was angry, because as he asked her:  “You’re going to pay for people who didn’t save any money and those of us who did the right thing get screwed?”  Discuss a plan for forgiving some or all of student loan debt.  Issues you may want to consider are (1) in terms of opportunity cost, cases such as this man’s where he made personal sacrifices which others did not, or students who chose to go to cheaper schools or live at home to reduce the cost of schooling, or students who chose not to go to university at all because of the cost;  (2) should some or all of student loan debt be forgiven for those whose families who could otherwise afford to pay, or for graduates currently in high-paying careers or who knowingly chose higher costs to go away to school for the experience?  (3) would forgiveness have a net negative or a net positive effect on the economy and why?

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Please make the answer more substantial using your own words and limite of two references.

*videos you may find helpful

Capital budgeting, including NPV, IRR, payback and PI:

Opportunity cost:

 

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