I recently read the very provocative diary by slinkerwink on the rec list entitled What's The Argument Against Forgiving Student Loan Debt?
It is an interesting idea, but most of the comments have pointed out the downsides to such a plan, I would like to propose an alternative system, and some counter arguments to the most frequent counter-arguments in the comments.
It has been noted that charging students so much for education is akin to eating our seed corn. As a recent graduate a year out of college, I can feel the pinch of this policy in my very own wallet.
I have an alternative idea to the one that slinkerwink puts forward. Create a new Government Grant System, open to any current students and anyone who has graduated that still has loan debt.
This new system could provide a source of educational funding to the current generation of students so that they could avoid the usurious loan rates the private sector is providing.
In addition, the system would be open to college graduates that still have student loans. They could apply for Grants, and the Government could mandate that any Grant money goes to pay the Principle of the Loan. In this way we could reduce the burden on the graduate class, while rewarding hard work and responsibility.
The Grants would be based off of the same sort of criteria that most Student Grants are based off of, need, ability, and circumstance. In this way we can reward the students, current or former, that work hard and act responsibly.
I can hear (calling from the aforementioned diary) the counter-arguments, and I would like to take a quick second to offer my opinion on them:
- This is unfair to those that didn't go to College or those that paid out of pocket for their loans
I agree, and life isn't fair. It would be a hell of a thing for someone to come up with a perfect fair and balanced system. This one has a lot of elements that better ensure fairness. If you took out student loans, screwed around, failed out, well too bad no Government Grant for you. If you worked hard, graduated, responsibly have followed your payment schedule, you deserve a helping hand.
Continually in America we have such a fear of someone getting ahead of us that we are willing to "cut off our nose to spite our face". Sometimes "a rising tide raises all ships" is true. (Two colloquialisms in one sentence, thank you higher education)
- Slinkerwink's idea would break the bank system
A mass canceling of debt could be a blow to the bank and loan system. This plan would not be canceling debt, but using taxpayers money to reduce the average burden of debt for a large portion of the populace.
- This smacks of elitism, I worked in the coal mines since I was 7, where's my handout?
This is not the end of the recovery road for America. Just as you can't build a wall with a single brick, you can't address all of the economic woes of the nation with one measure.
I'll end with a fun down-home entirely non-scientific homily.
I went to a state school, I received a full academic scholarship, I worked 3 jobs during my time at school, I successfully graduated a semester early, I still have over $20,000 in debt, for housing and extraneous expenses the average college student incurs. Thankfully I found a job right after graduation and have been able to afford my loan payments. Still, my monthly payments will be part of my life for the next 20 years if I follow their payment schedule and I will end up forking over $40,000+. If not open up a Government Grant program to help everyone, I still think the DKos community should pool money together to help me ;)