Student Loan — Another Look at Debt Forgiveness
Could relief from this financial burden benefit us all?
*Republishing from 2020
In this election cycle, many college-level students and recent graduates who are bogged down by student loan debt could potentially have this financial burden wiped away or considerably lessened if they act, with their vote.
The Brookings Institute estimated 42 million Americans, or 1 in 8 students, owe $1.5 trillion in student loan debt. About 6% of borrowers owe more than $100,000. But even for the poorest students within the 94% with one-tenth that loan amount, it’s a steep mountain to climb especially if the degree was not obtained.
Living true to its reputation — the USA is the land of opportunity where individuals can invest in themselves by borrowing money to obtain a higher education that will ensure long term employability and the ability to payoff those loans. But, that’s only if the economy remains stable long enough. Recessions and decisions affecting the job market could thwart the best laid plans and cause unexpected economic hardships affecting some disproportionately more than others.
The option of student loan forgiveness would have been a godsend many years ago when a student loan stifled the financial health of many forcing them to make sacrifices and significantly decreased their quality of life. Having an outstanding and sometimes overdue student loan meant there was no hesitation in finding a job to repay, that paying the loan first would keep a persistent debt collector away, a blemish on credit reports would be avoided, that quitting a lousy job was not an easy option no matter how horrendous the working conditions, that fun and leisure and new clothes and moving ahead in life had to wait until the debt was satisfied.
Having an outstanding student loan forced many like me to be responsible and own up to decisions made, most importantly the promise to repay. The necessity to take out a loan forced us to curtail our dreams and ambitions to choose a school and major that was not necessarily our first choice or what we wanted but what we could potentially afford each year the bill came due. But after many tough years that struggle concluded and we could breathe again. I learned life-long skills to be cautious with loans, to look for and negotiate relief through a repayment plan and budget to live within means. That was just one battle I had to fight as a young college grad but the education obtained was mine forever and not something that could be returned due to buyer’s remorse or written-off due to inability to pay. Many recent college grads may be saved from this financial nightmare if they do the research and exercise their civic duty.
“Never let the future disturb you. You will meet it, if you have to, with the same weapons of reason which today arm you against the present.”
― Marcus Aurelius, Meditation
I was somewhat ambivalent of the prospects — that some will be given a Advance to Go and collect $200 card. Could there be a better way to tackle rising student loan debts that’s more fair? Maybe, but an idea has presented itself that is here and now. Beneficiaries could find themselves on equal social and economic footing as those students who graduated years earlier and that could potentially mean:
- purchasing power for high expense items — cars, homes, business start-up fees, travel and exploration.
- graduates can focus on their careers without the distraction of owing someone.
- more funds to pursue post-graduate studies hopefully in a STEM field where we are sorely lacking resulting in a probable overall economic boost.
I can’t even begin to imagine how further along we would all be if we had such a windfall earlier in life and career.
When I consider how hard I had to work to get past those years of indebtedness and how others could be spared that horrible fate, it’s somewhat unsettling. But, such selfish and myopic stance slowly erode once I look at the hidden benefits to society:
- Maybe such a program propels all of us further in science and technology fields to address our ongoing issues with poverty, disease management, truth in communication, homelessness, climate change, green energy, criminal justice and any number of isms.
- Maybe this is the start of a flywheel effect that energizes and serves as a catalyst for the next generation to outpace the current anemic academic trajectory.
- Maybe it’s a boon for those without and those already with an advance degree to return to school to pursue their deferred interests or retool to enter a more lucrative field.
We meet today’s rising student loan challenges by putting student loan forgiveness near the top of civic concerns because it provides a possible solution to many who are in need of relief. The future is now but when I look back to those times to see what was most different the glaring answer was our country had a rare and meaningful budget surplus. So there was economic stability, actually the economy was thriving so I had some help. When the student loan forgiveness idea is looked at from the perspective of our collective and long-term benefit, it’s easier to squash our dissenting internal bias but ultimately it’s an individual decision to make.
I can’t wait to see how this turns out, if this idea becomes reality. If it does, I’ll be watching to see its effectiveness, how the needle moves towards our collective economic, educational, social and financial revitalization for maybe its how the USA maintains its noble reputation as the land of opportunity.
