Should the Biden Administration Cancel College Student Debt?

The debate over student loan cancellation has been a contentious topic among policymakers and the general public. Many believe that canceling student loan debt is the solution to the growing burden on college graduates. However, a critical analysis reveals that such a move could have far-reaching consequences that may not address the underlying issues effectively.

Opinions Against Cancellation

Proponents of canceling student loan debt argue that it would help alleviate the financial stress on borrowers and provide a new lease on life for those with overwhelming debts. However, opponents question whether the taxpaying public should bear the financial burden of someone else's debt. Critics argue that:

College students are held accountable for the debt they incurred, having signed the note and agreed to the terms. Many students are pursuing degrees that lack job prospects, and the idea of getting a stupid degree without researching potential outcomes is irresponsible. Colleges and universities should shoulder some of the responsibility, as they often set tuition rates and are profit-driven institutions.

Why Cancellation Is Not the Answer

Student loan cancellation or forgiveness, or the proposal for free college, has significant downsides:

No Free or Cancelled Debt

Student loan cancellation does not mean that the debt is truly wiped away. Instead, the government and banks will still need to be repaid, one way or another. This means that non-borrowing taxpayers and those who chose less expensive educational options will end up paying for the debt incurred by others.

Impact on Taxpayers

Income from student loan cancellations can be viewed as a form of tax. Taxpayers who did not attend college or chose less expensive educational paths would be required to contribute to this fund. This creates an unfair parity, where those who made other educational choices would be subsidizing the debt of others.

Affordability, Not Free

The current issue is not with the need for students to borrow money for college. The problem lies in the excessive borrowing and the subsequent high costs of higher education. College education should be affordable, not free. The real solution is to ensure that it remains accessible and affordable to all, without resorting to mass debt forgiveness.

Cost Implications for Universities

There is a direct link between the funding available to universities and the tuition they charge. Historically, as the government increases the amount of money students can borrow through federal loans, universities often hike their tuition costs. This cycle can lead to even higher education costs, making the situation worse in the long run.

More Affordable Solutions

Instead of canceling student loan debt or making college free, more targeted and affordable solutions could address the root issues:

Loan Repayment Assistance Programs: Programs that help low-income graduates repay their loans more affordably. Tuition Cap Programs: Implementing policies that cap tuition increases to ensure they do not rise unreasonably. Income-Driven Repayment Plans: These plans adjust monthly loan payments based on a borrower's income, making them more manageable.

Conclusion

The Biden administration's plan to cancel student loan debt is not a panacea. While it may provide some relief to those in debt, it fails to address the underlying issues of high costs and excessive borrowing. A more effective approach would be to focus on making college more affordable, ensuring that all students can afford higher education without incurring insurmountable debt. By focusing on these targeted solutions, we can create a sustainable and fair educational system.