When I first heard about the idea of student loan forgiveness, I was excited. Who wouldn't want 10, 20 or 100 thousand dollars of debt magically wiped away. Ten years later and still without a degree, I am paying money for something with no intrinsic value. But whose fault is it? It isn't the University's fault that I didn't take school seriously back then. It isn't the banks fault. No one forced me to sign the paperwork, nor did they force me to take out the maximum amount each semester. I could have worked full time like I do now, but I didn't want to lose out on the "college experience." I knew full well what I was getting in to. So why should the government pay to bail me out?
Why should you pay bail me out?
The reality is that if a bail out occurs, it isn't the government that is paying to erase our debt, it is us - the tax payers. I don't believe I should have to pay for someone else's Harvard education. I made a choice to keep my education costs in check by going to community college for the first two years. Every person with debt made their choices to get there. Those people with more debt than they will ever be able to pay, often made poor choices to accumulate that debt. Why should I pay for their decision making?
Does the government think that forgiving the debt will boost the economy? For those that truly cannot pay on their student loans, it would not make a difference since the loan would have been deferred. In order to boost the economy at all, the bail out would have to go to those that could afford to pay the loan. That way the money they were paying is now disposable income. But what is the sense in that? We are paying taxes so that other people can not pay back what they borrowed, in order to let them shop more?
I understand why politicians would get behind something like this. At first glance it is a likable idea; a great publicity win. Then the hard facts start to crack the pretty façade. There is nothing pretty about our government incurring an additional trillion dollars of debt. Even less so in cases where the debtor can truly afford to pay. It is time that we stand up to politicians that think we only need a hand out for their vote, and look to those that understand the implications of what they are suggesting. They should be as careful with the government's money as they are with their own, because at the end of the day, it is.
http://www.huffingtonpost.com/rep-hansen-clarke/student-loan-forgiveness_b_1454241.html
I recently read an article by Carrie Burkett, titled "Bailing out the Former Student." Upon first reading the title I believed she would be in favor of the topic, but as the story progressed, I realized she was actually opposed to it. Carrie begins by explaining her own experience with student loans, and then proceeds to take full responsibility for her actions; including the debt she has acquired. I am a firm believer in owning up to your mistakes as well as recognizing them, in order to prevent wrong doings from reoccurring, and Carrie did an excellent job by doing so. She was up-front and offered no room for nonsense, all while illustrating the debt many student place themselves in, to achieve the "picture perfect college experience." Carrie then attempts to understand what the strategy of the government is. The taxpayers would be the ones paying off the loans, and would not offer a great stimulation to the economy, so what’s the catch? The author believes it is campaign gold for politicians, and I have to admit I agree with her.
ReplyDeleteI do not think the government should pay backs the loans of students, by reasoning of, students are well aware of what they are getting themselves into when signing loan papers. As a result of this, I do not have one student loan under my name. Not because I am a wealthy individual who can pay for my education up front, but because if I do not have the money, I do not attend college. I depend on other resources such as scholarships, Pell Grants, or even (gasp) working more hours. It would be very easy for me to sign my name on a couple of forms and receive thousands of dollars; but it would be a very hard life to live with massive amounts of debt weighting on my finances.