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Wednesday, March 21, 2018

The Need for Student Loan Forgiveness: 3 Unanswered Questions

More student loan forgiveness is needed in the U.S. while lawmakers consider removing it altogether. Does it make sense or is it counter productive? Here are a few thoughts that you may or may not agree with depending on where you lean on this issue. Yet there are important questions because we must address those issues in the future.

1.) If college education is getting more expensive how does a high student loan interest rate and the discussion on removing student loan forgiveness impact future education?

While it may seem to be a money saver we may need to consider that it will become increasingly more costly and while the need for education in a high tech world is increasing the ability to obtain such an education will decline.

2.) Are student loans a drag on the economy?

Somewhere around a trillion dollars is locked out of the economy by student loans. This money is not spent on products and services. Of course government revenue is important but we should consider the other costs associated with pay back issues as they impact home ownership, childcare, etc...

3.) Do people have a right to higher education or not?

We must wonder if the highest paying jobs are reserved for those who attend elite institutions in certain fields. Making it more difficult to for others to attend school simply says, "If your parents are wealthy we have an education and job for you, but if you are poor you are going to have to fight the whole way". Lets also consider the middle class that will need to consider cheaper programs with the least amount of debt.

We have a problem of the have and have nots in society now. The movement is growing and economists are warning of the potential catastrophe in the future if we don't allow for more mobility. Reducing student loan forgiveness at this time sends the wrong message. It also perpetuates a problem and we may end up paying the price 20 years down the road with political instability and other other issues when we "lock out" some of our labor force from a better life. Instead of removing student loan forgiveness we may want to expand it to more college students regardless of whether or not they work in the non-profit sector.

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