“Student Loan Forgiveness” Student loans are something that haunts us all. It even scares some people from wanting to go to college just because they don’t want to face the student loans afterwards. 70% of graduates are leaving school with some extra financial baggage. So, they made a thing called “Student Loan Forgiveness” this is a program that helps out working people manage their student loan debt after 10 years. The question is, is this really a good program like it may seem?
They say that having student loan forgiveness will help boost the economy by allowing the people who just got out of college to be able to afford nice things like ouses and cars, allowing the economy to boost. Although that may potentially be true, there are many other factors that make student loan forgiveness a bad idea. Student loan forgiveness would increase the taxes for the taxpayers or if they don’t take that route, they would take the money it takes to forgive the loans from other programs that the government has.
The Student Loan Forgiveness program will affect someone eventually. The taxpayers have enough burden on them already, they don’t need another thing to worry about. Having the program around would create higher taxes because they have to get the oney to fund the forgiveness program somehow. The program also isn’t guaranteed, it’s only for people who work in specific fields who are eligible. Also, no one is entitled to go to very high end colleges.
To cut the student loan debt, going to a community college first would help the amount go down. Having the student loan forgiveness program would also make it harder for people to get loans from banks because they aren’t sure if they will get their money back or not. Yes, the students coming out of college will have more money to buy more things to boost the economy, but what they don’t know is that student oan forgiveness is only eligible after 120 payments (10 years). So it will take them 10 years just to get the forgiveness.
This program is just taking money out of the working people’s pockets to pay for other people’s problems, creating more money issues for the people who pay taxes and paid for their schooling on their own. Student loan forgiveness isn’t a good program because the money isn’t really “forgiven” it’s just taking money out of other programs to pay for other people’s loans that they can not pay for. The money funding the student loan forgiveness program will come from the taxpayers, or even worse, other government ssisted organizations such as WIC.
The economy isn’t a machine the government can manipulate to achieve particular outcomes. ” (Blanco). It’s a lot more complicated than most people think. It’s a big process that many people are associated with to make those things happen and throwing money to people to help out their debt isn’t gonna fix ours and make our economy boost. That is not how the government makes the economy boost, saving their money on useless programs is how our economy will boost and it will teach people that they have to work for what they want instead of trying to be eligible to get free money.
These taxes can create huge hidden costs when this forgiveness amount hits your tax bill” (Lockert). Some forgiveness programs under the IRS could be considered taxable incomes and could make you faces a big tax bill and if you cannot afford to pay that tax bill, then you set up payments with the IRS to pay off your tax debt and if you still fail to pay that then you will have to pay interest on the debt, which in my opinion would be way worse than making student loan payments every month. Student loan forgiveness is also not guaranteed to everyone.
You have to have certain requirements to qualify for this program. You have to work in a public captivity and you have to make all 120 payments on time. Sources say that if you do meet those requirements, then after the ten year mark, anything that is still in your current balance will be forgiven. But what they don’t tell you is that there is a cap to these programs. Barack Obama set the cap at 57,000 so if you have debt remaining that is over that amount then you would still have some student loans to pay.
People who think that student loan forgiveness is a good thing haven’t read all of the things in fine print, known as the awful things about it. They only look at it as them not having o pay as much as they thought, but that could also hurt them in the end. No one is entitled to have a college education. “Education is not a right, but a privilege. ” Nicholas Freiling. By making banks forgive loans for people who cannot pay for them means that the government now makes college education a right because it does not need to be paid for if student loan forgiveness was a good thing.
Since college education is now a right and considering it as a right will only make the “Entitlement culture bad for morals and ruinous for the economy. ” Nicholas Freiling. With that being said it will make the attitude of the students hange because telling any sort of teenager they have a right to go to college, even if they cannot afford it make them have a “selfish attitude”. Lastly, having student loan forgiveness will eventually make it harder for banks to give out loans because they aren’t sure if the loans will be forgiven or paid off.
The bank loans are more like favors coming from the banks, but forgiving the loans will hurt the banks and eventually make the banks not want to give out loans anymore. Especially if already have a low income, making it more likely to want to do the student loan forgiveness. Also if you have a history of not making the payments on time. People need loans for things other than just student loans so we should stop the student loan forgiveness program so it won’t be as hard to get the loans that people actually need for houses or cars.
Most people claim that having the student loan forgiveness program will boost our economy by allowing the graduates to not focus on their student loan debt after college, but focus on buying houses, buying cars, getting married, and living life. They claim that it would “stimulate the growth in the economy” by making them spend more of their money on goods and services nstead of throwing all their money on the debt, but that’s not exactly true. The government has to find the money somewhere to use that to forgive the loans.
Therefore, they will take that money from different organizations and take some of the money from the taxpayers making taxes go up for most people. Student loan forgiveness isn’t a solution to the problem of all the debt, all it’s doing is making other people have to pay for it. It’s not a very good idea in my opinion because throwing money at the consumers does nothing for our economy. Of course, no one wants to come out of college with housands of dollars in student loan debt, but there are ways to avoid the high amount.
Instead of just forgiving the debt, maybe we should educate the incoming college students with other options to cut the cost of student loans. Such as a community college first, signing up for scholarships, and not picking the most expensive college to look cool in front of their friends or just going for the parties. There are ways to cut the cost of college but you really have to make smart decisions before you go because you might not think it’s a big deal now but when you’re a college graduate, it might shock you.