The news today is that Biden is giving serious consideration to cancelling a significant amount of individual student loan debt. College is expensive and private schools are truly a luxury expense. Many Americans today are under the burden of repaying their student loan debt. That debt is personal to the individual who borrowed the money. Many of those who borrowed the funds viewed that debt as an investment in their future income stream. Sometimes investments have great returns and sometimes the investment fails and you lose money. That’s life. It was your choice. We have all made some great choices and we have all made some terrible choices that have cost us in either money or stress. Perhaps both. But again, the choice was individual to each of us.
Should President Biden forgive all or part of student loan debt, it will certainly have a political benefit to him and his Party. It will also free up a lot of money for those whose debts have been forgiven. Those individuals may very well cast their votes in future elections for President Biden as a means of saying thank-you. Some will even say it will stimulate the economy as the now debt free former students can purchase other products in the marketplace.
Everything comes with a counter balance and this debt forgiveness has a backside. Future administrations will have great pressure on them to forgive future debts of students. Higher education will see this as a means to achieve more revenue and the costs of education will increase with higher fees and tuition. Everyone seems to be forgetting that there still remains a debt if the “individual” debt is forgiven. That means the American taxpayer is on the hook to repay that forgiven individual debt. The nation’s deficit will grow with an increase in taxes to pay back the debt. On top of that, the great evil we see in the markets will increase. INLATION WILL CONTINUE TO EXPAND. Inflation hurts all Americans. Student debt forgiveness may be great politics for Biden. I suggest it is bad government for the American taxpayer.
It has been a couple of years since my wife and I were in college, but I remember the student loans, even in my senior moments. We paid them back. More importantly, we did not over burden ourselves with debt and took a little longer than most to obtain our five college degrees. We did what many of our friends did back in the 60’s and 70’s, we worked our way through college. I worked 40+ hours a week at the Lehn & Fink factory in Lincoln and my wife worked as a night auditor at the Holiday Inn. We didn’t have an extensive social life. We had a child and went to college. I earned my Master’s degree while working as a probation officer and attending college at night. We had another child, but we knew our priorities. When I went to law school, Ivy worked as a medicare auditor. Money was tight, but we took care of business. Perhaps, I am selfish in my senior moments. I simply have no desire to repay someone else’s debt with an increase in taxes. Young people need to understand that college is not for everyone and that it costs money to attend. Some families have the funds to pay for that private school. Most do not. Let the individual student ascertain how best to pay for his/her education. We worked, as did our college friends. We didn’t keep the bars in business, but the grocery store seemed to like us.
Take the politics out of student loans. That loan was and is a choice. Take care of business.