Imagine students graduating debt-free. Thanks to existing student loan forgiveness programs, this is not a fantasy; it’s a real possibility. This is great news for some, but others are convinced that debt forgiveness will lead to chaos: injustice for those who have already paid off their loans, economic collapse, and a loss of personal responsibility. But is it true?
Argument 1: Cancelling Student Loans Is Unfair to Those Who Have Already Paid Off Their Debts
People who have already paid off their student loans feel that it is unfair for others to have their debts forgiven. They have spent time and effort to pay off their debts. They have given up buying a home or starting a family because all the money they earned went toward paying off their student loans. They are proud to do it independently, relying on their discipline and determination.
This means that these borrowers view student debt cancellation as unequal. They believe that everyone should work hard to pay off their loans. Since they could do so, others should be able to do so, too. Their idea is that debt is a type of obligation that everyone takes on of their own free will and that must be repaid.
Refutation
There is another side to this problem. Today, the average graduate student has about $30,000 in debt and can’t pay it off for years. The cost of education has continued to rise over the past few decades, so today’s generation of borrowers faces greater financial hardship. This makes student loan cancellation an essential part of many people’s plans to get out of debt and create a better future for themselves.
In addition, current borrowers and future generations of students will benefit because higher education can become more accessible by easing the financial burden on the entire educational system. Consequently, people will have more opportunities to gain knowledge and build careers without fearing huge debts. Thus, debt forgiveness will greatly contribute to the development of society as a whole.
Equitable solutions can also be offered to those who have paid back their loans; for example, tax breaks or other forms of compensation for the efforts made can be introduced. This will bring balance and allow the interests of all parties to be considered without any feelings of injustice.
Argument 2: Cancelling Loans Will Increase the National Debt
One of the main arguments against canceling student loans is the fear that it will increase the national debt. When the government forgives debt, it loses money it could collect from borrowers. The government would have to borrow or cut spending in other areas to compensate for this loss. Opponents of debt cancellation believe that it would worsen the budget and could prevent funding for important projects such as highways, health care, and defense. For example, in the United States, total student debt is more than $1.7 trillion. If the government decided to forgive even a portion of this debt, the budget would come under great pressure. Critics argue this could lead to higher taxes or cuts in other programs.
Refutation
While accumulated national debt is a problem, it is worth considering the economic impact of student debt. Students who graduate with high debt levels tend to have limited financial choices. Many put off buying a home, investing in a business, or saving for retirement. This hinders economic growth because less money is circulating in the economy. Without debt, people will spend more on goods and services, improving the overall economic impact. Increased consumption and investment can partially offset the cost of debt forgiveness.
There are other ways to solve the problem of financing education without creating new debt for the state. For example, you can increase funding for public universities by giving more grants and scholarships. You can also create programs where loan payments depend on income. This will help students take out fewer loans and make education more affordable.
In Europe, students pay much less for education, sometimes even free. These countries show that creating a system where students receive a quality education without accumulating large debts is possible. So, although the abolition of loans may increase debt in the short term, it can be more beneficial for the economy in the long term. If new ways of financing are introduced, the problem can be solved in many years.
Argument 3: This Demotivates Students to Look for More Affordable Educational Programs
Some people believe that if student loans were forgiven, they would stop looking for cheaper options. For example, they could attend expensive schools instead of choosing public universities or community colleges with low costs. The argument is based on the fact that if debts were forgiven, students would no longer have to worry about how much education costs.
In the past, students often chose more affordable programs to avoid large debts. Options like public universities or community colleges allowed them to save money. But if loan cancellation became possible, there is a concern that students would not think so much about the cost of education.
Refutation
Canceling student loans could lead to positive changes. When students have no debt burden, they can focus on choosing programs that are truly interesting to them and will help them in their future careers. This will help people choose programs based not only on price but also on their personal goals.
In addition, debt cancellation could encourage schools to rethink their prices. Universities can begin offering more affordable and flexible payment options to attract students even if debt forgiveness becomes a reality. This will help make education more accessible to everyone, not just those who can afford expensive programs.
Argument 4: Debt Cancellation Will Lead to Inflation in Education
Tuition fees could rise if student loans are forgiven. The argument goes that universities, realizing that students are no longer as concerned about their debts, may begin to raise tuition fees, making education more expensive for everyone.
Debt cancellation could also make institutions feel the government will take financial responsibility for tuition. In this case, universities may not feel the need to control tuition fees, which could further contribute to inflation.
Refutation
While these concerns are understandable, it is important to consider how these consequences can be avoided. First, debt cancellation should not be the only measure. If accompanied by reforms to the education system, it can prevent prices from rising. For example, the government could impose caps on tuition increases to prevent universities from raising prices unnecessarily.
Second, instead of relying solely on loans, public funding for education could be increased. This would allow students to receive more grants and scholarships, reducing their need for large loans. When the government supports education, it becomes more accessible, and students have less debt.
In addition, universities can implement more effective teaching methods, such as online courses or shortened programs. This will help reduce tuition costs, making education more accessible to more students.
Argument 5: People Should Be Responsible for Their Financial Decisions
Many believe that if someone takes out a loan, they should be responsible for paying it back. This is part of financial discipline: if you take on a debt, it is important to fulfill the obligations that come with it. Otherwise, debt forgiveness can create the impression that you can ignore the consequences of your financial decisions. This raises concerns that in the future, people will take out loans with the expectation that they will be forgiven, which reduces the level of financial responsibility.
The logic behind this argument is simple: Before taking out a loan, a person should evaluate their capabilities and consider whether they can pay off the debt in the future. This helps develop planning and money management skills, which are useful for building a stable life. Taking responsibility for financial decisions teaches people to be more conscious about borrowing.
Refutation
However, despite the importance of personal responsibility, we must not forget the economic realities many borrowers face. The cost of education has increased significantly, and salaries in most industries have not kept up with this growth. This creates a situation where many graduates need help to repay their debts, even if they made a responsible decision in the first place.
It is also worth considering that the higher education system often requires students to take out large loans to get the education they need and the chances of a good job. This is not always a matter of choice – for many, it is the only way to get the education they need. In such cases, debt forgiveness can help people focus on career development and economic stability without a debt burden.
Financial literacy can be strengthened instead of full responsibility for debt to improve the situation. Teaching young people how to manage debt and plan a budget will help them navigate financial matters better. Education reforms that will reduce the cost of education and the need for large loans are also important.
Final Thoughts
Finally, canceling student loans is controversial. Some argue it is unfair to those who have already paid off their debt, but tax breaks can offset this. There is also a fear of increasing the national debt, but debt relief can support the economy through increased consumer spending. The argument that students will stop choosing affordable programs can be countered by reforms that keep education affordable. Inflation in the education sector can be controlled through price controls. Finally, while responsibility for loans is important, economic hardship often prevents repaying them. Debt forgiveness, financial literacy, and reforms can create a more equitable education system.