The Government Should NOT Forgive Student Loan Debt Essay

The Government Should NOT Forgive Student Loan Debt Essay

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An education is one of the most important tools a person can acquire. It gives them the skills and abilities to obtain a job, earn a wage, and then use that wage to better their lives and the lives of their loved ones. However, due to the seemingly exponential increase in the costs of obtaining a college degree, students are either being driven away entirely from earning a degree or taking out student loans which cripple their financial prospects well after graduation. Without question, the increasing national student loan debt is one of the most pressing economic issues the United States is dealing with, as students who are debt ridden are not able to consume and invest in the economy. Therefore, many politicians and students are calling on the government to forgive their student loan debts so that through their spending the slowly recovering economy can finally return to its pre-2008 strength.
To understand the student debt crisis, one must first understand what caused it and what results from it. College undergraduates use student loans to finance the cost of tuition, room, board, transportation, and personal expenses while attending (Gage and Lorin). Student loans are different from other forms of debt because basic consumer rights like bankruptcy protection don’t apply to students who default on their loans. As a result, students are virtually locked into their debt, offering them little to no ability to refinance it. Solutions to debt problems like consolidation are available to students but that process doesn’t involve shopping for a better deal from competing lenders like it does in other debt areas. Therefore, interest rates often remain high and the loans remain with the original lender (Vanegeren). As Kayla Webley expl...

... middle of paper ...>.
Schou, Solvej. "Finally, a Law That Would Protect People From Student Loan Hell." Yahoo News, 12 Feb. 2014. Web. 16 Feb. 2014. .
Vanegeren, Jessica. "Wisconsin's 'Higher Ed, Lower Debt' student loan bill set for Wednesday hearing." The Cap Times., 3 Feb. 2014. Web. 16 Feb. 2014. .
Webley, Kayla. "Is Forgiving Student Loan Debt a Good Idea?" Educational Financing. Time: Business & Money, 20 Apr. 2012. Web. 16 Feb. 2014. .

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