Finance / Government Watch / Opinion / Politics

Mass Student Loan Forgiveness – Bad Idea

Loan

Mass forgiveness of student loans –$300 billion to $1.7 trillion dollars, $10,000 per student for 40 million Americans – is being pushed by Biden. The idea is wrong – counter-productive, irresponsible, and should be stopped.  Five reasons argue against this notion.

You will say: “Gosh, the economy is tough, life is rough, students are indebted; where is your compassion for those who need free money, loan forgiveness?” The answer is, think harder.

As someone who came from a family with no money for education, who worked, earned, received, and repaid loans of more than $100,000 for college and law school, never wanted them forgiven, never imaged them forgiven, would not want them forgiven now, please hear me.

First, when someone takes a loan – for a house, car, or college – they are learning something. They are saying something about themselves to a lender, whether government, bank, school, company or relative.  They are saying – “trust me, I am undertaking a commitment, intend to honor it.”

Go one layer deeper: When taking a loan for college, someone is saying, “on my honor, with recognition that the future, economy, my skills, and life are uncertain, I promise to pay this back.” They are asking and committing to a lender’s trust, making a pledge of trust to themselves. 

Historically, a long shadow was cast over people – often by their own conscience, relating to a sense of honor – if they could not get out from under a debt. Over time, the notion evolved. Debt was seen as permissible, necessary for essentials like home or schooling, and it became commonplace.

In effect, there was no dishonor in carrying debt, so long as we kept our word to the lender and to ourselves, that a loan or debt assumed, with an expectation of honorable repayment, got honored.

What exactly happens to honor, to that process of pledge and fulfilment, investment in oneself with risk of failure, trust by others in us and us in ourselves, when we are suddenly relieved – by a hovering federal government – of this obligation? 

In short, the process breaks – with honor no longer expected, risks taken are no longer believed real, trust to be proven is suspended, a chance to show we are up to the pledge is removed. Like being given anything, especially something we assumed we had to pay for, it is cheapened.

Second, think reality. Where does the $300 billion – or God forbid, $1.7 trillion – come from? You want honor, truth, honesty? It comes from others’ bank accounts, hard work, and sweat of another man or woman’s brow; that is where it comes from. 

In other words, there is no free lunch. When you accept federal largess, as if that money is picked from the “magic money tree,” you are actually – and knowingly – putting your own debt, stress, burden, and obligation on the back of another. Here then, is the second assault on honor.

Third, what does the idea of broad, un-means-tested, open-ended federal debt forgiveness teach those who look on from outside, who are neither borrowers nor even taxpayers, perhaps just kids? What does that act tell anyone? 

It says the federal government is run-a-muck, ready to give away money regardless of federal debt, now $30 trillion. Giving away money we do not have, lack of fiscal discipline, forgetting responsibility not to spend what you do not have, strapping taxpayers, driving up inflation, further cheapening the dollar, and weakening the economy is both reckless and immoral. 

“Whoa,” you say, “now that is a strong statement!” Yes, it is.  But think.  Who will pay this debt through inflation? Wage earners, middle class families, those barely holding on. Who else? Future generations, those who cannot afford it, did not ask for it, get nothing from it, are yet unborn. Sound immoral to you?

Fourth, think about the obvious motivation for debt forgiveness. Democrats want to buy votes with money.  How better than buttering bread on both sides, give you loans, only to forgive them. 

Ask yourself, “at what price?” Just your vote for greater dependence on the federal government, less control over life, concentrated power, a little public corruption – not a lot, just a little. But history is made – and liberty unmade – by inches, in little increments, while you nod and sleep.

To paraphrase Edmund Burke, all it takes for evil – benignly described – to prevail, is that good people do nothing, look the other way, accept it, imagine a little is okay. Is it? You tell me? And are a few dollars in the account, relief of debts you promised to repay, okay if all they want is your vote? Remember Charlie Daniels’ song, “Devil came down to Georgia”? Souls sell, selling?

Fifth, this opens the floodgates to socialist debt forgiveness across the board, beyond education, relating to any “equitable” or “wealth redistribution” scheme for votes, relief of debts for cars (electric, for example), houses (for “social justice”), credit cards (federal assumption of underprivileged, underserved, minority, or even majority debt), any other debt you wish. Is that the way to teach personal responsibility, keep a nation solvent, protect the future?

In short, lots of things look good at first, but prove not so on closer examination. The idea of giving away free money, more magic federal dollars, to 40 million Americans – tradesmen to lawyers, the voluntarily unemployed to doctors – is clever. It might win some votes. It is also wrong. 


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Lee S McQuillen
1 day ago

My children went to college. They took out loans and they worked. They all paid the money they borrowed back. They did not expect the government or anyone else to help them. As parents, we could not help. They all have a strong work ethic and good moral values. They have all worked hard to make a good life for themselves and their families. Being given so much, as many parents seem to today, does not make for a good person down the road. Our country depends on strong work ethic and good moral values. Paying off even $10,000 of student debt is not the way to do that. And it’s not fair to those who went before, nor is it fair that the rich would get it the same as those who really could use some help. It does not promote taking educational steps that are worth something in the job market rather than basket weaving 101! College, etc., is not a time to party but a time to work hard and learn! I’ve got 14 grandchildren who are all good citizens and earn their own way, following in their parents’ footsteps!

Sue
4 days ago

Taking a loan is taking on a responsibility, it is NOT free money. It builds character to pay back what you have have borrowed and promised to repay. Children take and don’t repay; adults repay what they borrow. Are you an adult or a child???

Valerie
5 days ago

Agree and sharing!! Thank you!!

Patricia A Arsenault
5 days ago

Agree 100% Thank you for sharing

BAE
6 days ago

NO loan forgiveness to anyone! UNLESS everyone that has paid their loan gets the same amount $$s BACK!

Marie Langley
6 days ago

All this is is a bribe to buy votes. That’s why Biden opened the southern border because he is buying votes. This is back firing on him since only 20% of Latinos like him. ha ha Idiot!!! People see right through this crap.
What are they going to propose next? Let’s buy all graduation students their own cars?

Susan Miller
6 days ago

Though I agree on the debt part there need to be some changes to getting a degree. I had to take courses unrelated to my degree and had to pay for them. (Accounting major forced to take a PE class)

Robert
6 days ago
Reply to  Susan Miller

Maybe you should have chosen a school that did not require a PE class for graduation …

Richard
6 days ago

Great explanation of the path to insolvency we are on in this country!

Tony
6 days ago

Stupidity at its best, if you borrow the money you pay it back

Lynn
6 days ago

By the way, I’m am currently 71 and still working. I would love that loan money back about now! The interest was what really grew uncontrollably with my loan. But it is now paid off. If I can do it so can these, as my grandma would say, young whipper snappers!

A.Grace
6 days ago
Reply to  Lynn

I paid off my loans, too. I also paid my daughter’s $17,500 and my granddaughters $8,000 school loans. I’d like at least $10,000 back if 40M are going to get theirs paid on.

BAE
6 days ago
Reply to  A.Grace

I hope you get $10,000 back and hope I get $10,000 back. BET we don’t!!!!!!!!!!!!!!!!

Lynn
6 days ago

I would like to know if I get reimbursed for paying off my student loan in 2018?

Richard Minetti
6 days ago
Reply to  Lynn

Just vote Republican in the subsequent elections!

Chris
6 days ago

This is a bribe to get people to vote democrat in November. Let’s call it what it is a bribe. Who really ends up with this debt is the American people in some way or form we will pay. People who have already paid their loans. Families who could not afford to send their children to college will all pay for this horrible idea. These kids knew what they were getting into when the went to college and if not they should not have gone. Take a class in economics and learn how to live in the real world. I paid for my children’s college and they paid their portion. It is not fair to all the people who worked hard to pay their loans off or to the ones who could. Not afford to go. Terrible Terrible idea but they just want to buy votes in November. This president needs a class in economic’s!!!!!

Garye
6 days ago
Reply to  Chris

The marxist democrat party needs a class in economics!
Truth is they don’t care,it’s all about buying votes with OUR money!
These useless slobs won’t even use their own money,they are a TOTAL JOKE!
THROW THEM OUT

Richard Minetti
6 days ago
Reply to  Garye

Just

VWYBNYE

(Vote with your brain not your emotion!)

fred
6 days ago

Bidum has never earned his pay in more than 50 years of sucking on the gov’t dole, and he still hasn’t learned what causes inflation! HIM. His totally unchecked Gov’t spending requires gov’t to print more monopoly money that is not and cannot be backed with gold, that’s inflation.
People gain a college degree because that usually results in increased lifetime earnings.
It is totally immoral, improper and unfair for others to pay for or forgive the debt of those who went or are going to college to increase their earnings. Millions went to college and paid off their college debt.
Even worse, are those who gave up on going to college because they could not afford the cost.
Biden is in the Executive Branch not the Legislative Branch that is empowered to write law.
Biden has signed many executive orders and that should be stopped. He has been breaking many Constitutional Laws since he stole the election and he is destroying America, the best nation in the world. Biden should be impeached, removed and imprisoned.

Oldman8291
7 days ago

So I’m a 61 year old Navy vet and I am in debt will Congress pay that off?

Rebel
7 days ago

Ya create the bill you pay for it. Its called growing up. Put your crap back in your pants. Grow your own set stop hanging on mine.

Hal T
7 days ago

How about we tie student loan debt forgiveness to acknowledgment of the degree? If your debt is expunged so too would any record of your degree. So the loan is forgiven you are left with a high school diploma.

Ray Assanti
7 days ago

My family didn’t have the money to send me to college. Besides, I really wasn’t sure what my interest was in a career. So, I enlisted in the US Air Force because of my interest in aircraft. Flew most of my career on transports. Went to school on my off hours and took the work with me on the road. Expended the GI BILL and took loans out. Payed those loans in half the time and served over 20 years. A Gulf War ,too!. So if I am willing to do this, they all can or go work for Target. Pay your way. Lots of blue collar jobs. Many retiring. Great money as aircraft mechanic, plumber and electrician. As examples. Don’t ask me to pay. The university got the money and the parents need to step in. Need to ask what they are taking for so much money and is it useful outside with good pay. This is horse hockey. Paying everyone but , ME.

Luana
7 days ago
Reply to  Ray Assanti

Totally agree.

twenzler
6 days ago
Reply to  Ray Assanti

God bless you and thank you

Roland ferrizzi
7 days ago

Totally wrong for all especially the students that were unable to get to College because they could not afford it and did not want to put this financial burden on their families.

Troybuilt
7 days ago

I remember I applied for a student loan. When it came time to pay it back, my husband passed away so I applied for a hardship. They said that wasn’t considered a hardship so I had to pay it back. If losing your spouse isn’t considered a hardship, I don’t know what would be. I still had to take care of myself and my children. If I could pay it back then I see no reason that others can’t.

Lisa Skinner
7 days ago

I am definitely not for student debt loan forgiveness even though we are currently burdened by a son and daughter’s current debt.
I am however in favor of eliminating any interest on student loans from here on out. That makes more sense to me

Kat
7 days ago
Reply to  Lisa Skinner

Totally agree about the high interest rate.

DBM
6 days ago
Reply to  Kat

Without interest, why pay back the loan?

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