Tags: jamie dimon | student | loans | disgrace | america

Jamie Dimon: 'Broken' Student Loans a 'Disgrace Hurting America'

(Dollar Photo Club)

By    |   Wednesday, 26 June 2019 06:01 PM

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon reportedly claims student lending in the U.S. has been "a disgrace" and is "hurting America."

Dimon told Yahoo Finance earlier this week that the nation needs to “fix the broken parts” of the student-loan system.

"Is there an issue with student debt? There is, but you’ve got to stop the creation of bad debt," Dimon told Yahoo Finance.

Dimon added that the government has "irresponsibly" lent more than $1 trillion since taking over in 2010.

“And now they want to forgive it,” he said.

“I think they should look at all parts of student lending, fix the broken parts, and then forgive those people need forgiveness, and then help people get into school, and then make sure the schools are responsible in getting the kids out,” Dimon said. “And what we've done is a disgrace, and it's hurting America.”

U.S. presidential contender Bernie Sanders has proposed a plan to cancel $1.6 trillion in student loans and pay for it with a tax on Wall Street, elevating the issue in the 2020 debate and going beyond proposals from his Democratic White House rivals, Reuters reported.

Sanders, an independent U.S. senator from Vermont, said his plan would wipe out college debt for 45 million Americans and be funded with a tax on stock, bond and derivatives transactions that would raise about $2.2 trillion over 10 years.

The proposal builds on Sanders’ longstanding call to make public universities and colleges tuition-free, an issue he has highlighted since his first presidential run in 2016. He said student loan debt was economically crippling young Americans.

“This proposal completely eliminates student debt in this country and ends the absurdity of sentencing an entire generation, the millennial generation, to a lifetime of debt,” Sanders said at the unveiling of his U.S. Senate bill.

“The American people bailed out Wall Street. Now, it is time for Wall Street to come to the aid of the middle class of this country,” he said.

Other liberal Democrats, including presidential rivals Elizabeth Warren and Julian Castro, have taken up the call and proposed smaller student-debt cancellation plans.

Meanwhile, economist Art Laffer on Tuesday panned Sanders' plan to eliminate student debt as a "silly, silly proposal" and warned its costs would be catastrophic.

"It would cause a huge collapse in the U.S. economy," Laffer told Fox News' "America's Newsroom." "The very people he is proposing to help, it will hurt them enormously. Just remember, you get rid of that $1.3 billion student loan debt, that goes right on top of the national debt, which is just changing whose hands are holding."

The bill, Laffer said, would also entice many people to incur the costs of college who should not be there.

"They should be in trade school, learning something productive in the labor market, and they are not," he said. "This is not a time to be rewarding additional people going into college where they are not going to learn very much, and they will be kicked out of the labor force, going into huge amounts of debt."

He added he does not think there is an economist who would agree with Sanders' proposal.

© 2021 Newsmax Finance. All rights reserved.

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon reportedly claims student lending in the U.S. has been "a disgrace" and is "hurting America."
jamie dimon, student, loans, disgrace, america
Wednesday, 26 June 2019 06:01 PM
Newsmax Media, Inc.
Newsmax TV Live

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

© Newsmax Media, Inc.
All Rights Reserved