Written by Gabe Mahon
The idea of loan forgiveness on its own seems like it could benefit the public. But just like all things, there is a cause and effect relationship which I believe could make a negative impact that considerably outweighs the positives. As a college student, I make sure to keep in check with my financial aid. I am well aware of all my scholarships, loans and amounts due. I keep up with all of it to ensure I never spend or borrow more than I believe I can pay back. All college students have access to their financial aid and loans. So it’s no surprise when the bill comes due that they have to pay it. All college students are well aware of what they’re getting into.
Another issue is that loan forgiveness may give future students the mindset that whatever they borrow will be forgiven. This could promote reckless borrowing, and plunge students into a deeper hole than they’re already in. If I believed I could spend $20,000 and not be accountable, I would do it in a heartbeat. Now imagine hundreds of thousands of students recklessly borrowing money they can’t pay back. This is asking for an economic crisis. Even so, colleges could raise tuition by $10,000 and put us right back in the same place.
Everyone making less than $125,000 per year is eligible for this loan forgiveness. That’s over 85% of Americans (Statista.com). That’s a lot of students, with a lot of loans that are simply forgiven. Any economist knows that money never disappears. It will be transferred to be paid by someone else. It’ll most likely be taxpayers who will then be forced to pay for students who have recklessly taken out loans. This money will largely be spent on middle class students. If we were going to mindlessly spend this much taxpayer money, couldn’t we do something more beneficial such as supplying better financial aid to low-income citizens to help make college an option for them?
Though there are many other reasons, this is simply a taste as to why I believe student loans should not be forgiven, especially to this degree. One thing I will agree with is that college tuition rates are way too high. Although I don’t agree with the particular solution provided, we should be investigating solutions to lower the cost of college. This would help not just the middle class who want college, but it would also appeal to low-income families and provide opportunities for them. High tuition rates are definitely a problem. Student loan forgiveness just isn’t the solution.
