More Americans Support Blanket Student Debt Forgiveness, Here’s Why They are Wrong
By Chloe Anagnos |
A recent GoBankingRates survey found that over 50% of Americans want student-loan forgiveness for everyone with any student-loan debt. Considering Democratic lawmakers are hoping President Joe Biden will keep his promise to cancel $50,000 in student debt per person, this data could certainly be used for leverage. But while the number of Americans who now want to see all higher ed-related debt simply erased from the books is growing, it doesn’t mean that we should follow along.
Pandemic and lockdown-related unemployment coupled with a slow economic growth following the low reopening of most states have, indeed, made it difficult for countless Americans to pay off their debt. It is thus natural to see U.S. residents wanting to help those in difficult situations. However, blanket loan forgiveness isn’t a response to hardship. It isn’t even a response to the broken American higher education system. Instead, loan forgiveness will only remove our attention from the errors of subsidized higher education.
Despite politicians’ best efforts, there’s simply no bottomless pit of money anywhere. Taxpayers, and even the Federal Reserve, will eventually run dry.