JP Morgan Chase CEO Jamie Dimon said this week universities “should feel more responsibility” for their students’ loans and called student lending in the U.S. “a disgrace.”
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Dimon made the comments in an interview with Yahoo Finance Tuesday, claiming the government has “irresponsibly” lent more than $1 trillion since 2010 — a move, he says, has been "hurting America." As of Q1 2019, student loan debt has hit $1.6 trillion, according to Federal Reserve data.
“I there an issue with student debt? There is, but you’ve got to stop the creation of bad debt,” Dimon told Yahoo.
Meanwhile, Sen. Bernie Sanders, I-Vt., unveiled a plan this week to cancel all student debt and add taxes for stock, bond and derivatives trades.
Dimon said a tax on financial transactions as proposed by the 2020 presidential hopeful would be paid by investors, according to the report. Also, universities should ensure better graduation rates so their students get good jobs, Dimon said.
“I think they should look at all parts of student lending, fix the broken parts and then forgive those people who need forgiveness,” Dimon told Yahoo. “Then help people get into school and make sure schools are responsible for getting the kids out.”
People with student debt may be feeling that way as well. More college graduates said they regret their loans more than anything else from their education, according to a recent survey.