We are going through rough economic times. Forgiving student loan debt will help increase economic consumption by young people and spur economic growth. Think of forgiving all student loan debt as a stimulus. Or perhaps we could just forgive 90% of the debt if people are concerned that since you agreed to it you should still owe some money. Obviously this would only apply to federal and state loans and not privately issued ones.
The fact is the cost of an education is too high and it is not the fault of the students of are subject to the ridiculously high rates it costs less to buy a home than the receive a BA. You can also get a 3.5% rate on a home verses nearly 8% rate on a student loan, something is very wrong with that. Banks are profiting off of people who have nothing graduating into a crappy economy their parents created to buss tables for less than minimum wage. Compared to our parents generation school now cost 80% more and that's not inflation that is the cost increase. This has caused an entire generation to be over a decade behind their parents generation and it shows in the economy no one is buying homes and no one will with that massive debt which has a ripple effect. Children will be put on hold vacations, new cars, the list goes on. To the old people who complain about this generation you need to look in the mirror it was your generation who created the current mess we are in and it was your poor parenting that created the youth we have blame yourself. Now we must forgive this debt to give this generation a chance to prosper but so many people are greedy I disagree well then we will are suffer mutually through this hell economy until wealth is passed on through death and we begin to look like the European economy which praises when it hits 2% growth.
The job market is becoming more competitive, Saturated, And scarce. Technology is also making a dramatic shift in the way business are ran today. Most products are being mass produced for as little money as possible. People are spending more than they are making in the U. S and most of that spending is going to the basic essentials of food, Gas, Mortgage/rent, And utilities. "This also out of debt spending. " People are being replaced with automated systems, Robotics/ai, And reduced wages overseas. Wages are stagnant in the U. S. Inflation has dramatically been increasing. Student defaults and increased interest rates on these loans are increasing. All these situations have put a huge burden on the circulation of spending for these students. Without this circulation of money other goods and services will suffer creating a huge "Domino Effect". When students can barely afford food and the cost of living. How can they spend money on goods and services? The money is not being circulated but hoarded by big corporations because of old ideological mindset of trickle down economics. The economy is suffering and a huge bubble is coming in my opinion. It's near impossible to pay these loans back. Most students are already struggling with the basic costs of living. Many of my colleagues have moved back in with there parents and some of them have kids barely making 20 to 28k a year. Since most jobs are becoming automated and technologically advanced to be more efficient every year. The more we will see a shift in jobs being taken over by A. I. And algorithms. So, Some of these so called degrees may not even be around in 10 to 20 years because of technology. These degrees are not worth what students pay for. Students wanted an education to get a good paying job but when corporations find a faster and efficient way they will do it because bottom line it's about how much money they can make. This is not about entitlement this is not about whether a student is responsible or not. Its about a dramatic shift in the way business are moving towards technology and they want faster and more efficient ways of making a buck. Technology is replacing these jobs and It's no wonder the younger generation is having such a hard time. So how can a student pay back a loan when they can't? There is no money to give! These students are poor and can't find decent paying jobs! So once again, It's not about entitlement or being responsible its simply because they know it's not worth what they went to school for and it feels like they just got scammed. These loans are just a form of oppression by big money. All students wanted to do was get a good paying job and contribute to society as a whole. They shouldn't be punished or ridiculed for that.
I am 55 and not in the best health. I drove a tractor trailer for 15 years, can't do it anymore. I have one loan I took out in 1988. The others are from 1998. I was single, struggling with some personal issues and never made much more than minimum wage until I drove a truck. I consolidated the loans in 2004, so even though one is 30 years old and one is 20 years old, and with all the capitalized interest they are now $38,000. They want $421/month. There is no freaking way I can afford to pay that. I live in an economically struggling county in rural Tennessee. I can't fix this and I'm afraid the Feds are going to come take away my house from me. It's just a $32,000 home built in 1934. What am I supposed to do???
It would reduce the impact of wage inequality and lack of jobs. Those issues are bad enough without adding a horrible amount of student loans with high interest on top of it. The government needs to go back to square one and rethink its financial priorities. I think that publicly funded colleges are the way to a much better future for our children. I do not think that people would take advantage of it like some seem to think. Why would people want to spend any more time screwing around with school than they have to? I know I couldn't wait to get out of school and get on with my life. Not to mention, with horrible wealth inequalities between the classes which are widened by student debt; it exasperates already present social problems. If the poor stay poor regardless of educational efforts, they will be looked down upon. This country worships the rich. I am so tired of it.
We were promised that taking out student loans and earning a degree would enable us to pay off our debt and live comfortably. After the economic crisis jobs were scarce and pay was poor. Jobs still do not pay as well as they did in the previous generation. Nowadays we need a dual income to live and pay off student loans. Forget about being able to afford a house or start a family as well. People can no longer afford to buy, go on vacation and purchase a home. Many of us are forced to live with parents or house with multiple people in order to get by. This is not what we were promised. Equally important, we cannot save for retirement. Extra money goes to loans for years. If debt if forgiven it will enable us to buy homes, save for retirement, start families, go on vacations and purchase items. It will open up hundreds of dollars a month for millions of people for investment in the economy.
It could help the economy and help give people a chance to understand the meaning of "forgiving." Yes, they should probably pay 90% so they can know that not everything is forgiven. They shouldnt be entitled to whatever they ask for. But we live in an economically poor world, and this could help the next generation
The debt owed by a minority of people (who are objectively more educated, likely more well connected and as well as wealthier) would become debt owned by all people (including those who are not well connected, poorly educated, in lower classes). Owned by all people meaning the entirety of the tax-paying population via the national debt. It is an unjust and regressive form of wealth re-distribution. A large benefit for a few at the expense of the many.
To forgive student loan debt just because it has become burdensome to the debtors does nothing but reinforce irresponsible behavior. There is no magic wand to fix this. If you eat too much, you get fat and have to go on a diet. If you borrow too much, you go into debt, and must scale back your lifestyle, or boost your earning and pay it back.
Welcome to adulthood...
It took me 10 years of hard work to pay off my student loans that totaled nearly $80,000. It would be crappy if after writing the last check on the final payment, we find out that anyone with exesting student loan debt get to have it erased. Does that seem fair? I think not.
I personally think that students should have some skin in the game when it comes to college. It ensures that that person is committed to the program they chose, not just riding along with a free college education. I worry that free college would encourage more students to go further into their college years without declaring a major and wasting their college years
When people apply for colleges they don't think about the fact that they need to pay these loans back someday. They see that it costs 40,000 a year and don't realize that their major can only get them a job for 80,000 a year max(if it's even a good career major). They all assume that they have to go to college for a career, no true at all, there are all kinds of skilled jobs that are in demand and pay more than people realize. This country doesn't need another buissness or political science major it needs electricians, plumbers, and other trade/skilled workers.
Student loan debt does not have any collateral. Student made a promise to pay the loan back (by signing the loan documents), and with that money they got what they wanted (a degree in whatever they want), so it is the time now to full fill their obligation by paying the debt off completely.
Depending on the degree it should be however there must be a form of punishment interred upon the institutions selling these useless degrees if the person cannot find and acquire a job within a reasonable amount of time within a reasonable expectation of committing to a possible move.
One thing I find a lot of is people not wanting to move to the jobs they find. Being hired before the move is completely possible now-a-days and start-up funding from many corporations who understand the move itself is available if sought. There are a lot of options for this type of movement and it may require you move upto five hundred miles away from where you were to get established.
This sounds horrible but usually after a little experience you can move where you please, including back home, and it is no different than college for many students anyway who don't live or attend locally.
In the case of useless degrees such as a PhD in Medieval History the school should have to pay out to the recipient AND be forced to give them a useful in modern economy program plus pull the program from it's options permanently or limit the amount and have it come with a severe disclaimer. The upfront nature of degrees is questionable and the investments in them without backing with full knowledge of student failure being imminent is appalling.
As for everyone else who has a career in their field they should be forced to pay them back.