Editorial: Loan forgiveness requires conditions

There have been many good arguments – mainly from the Conservatives – against writing off large chunks of debt that former students have accumulated to continue their education.

Such a write-off would be extremely expensive, with estimates going up to $ 1 trillion, depending on the size of the write-off.

It would be unfair to penalize those who sacrificed themselves to repay their student loans while rewarding those who may have borrowed more than they should.

This would further remove restrictions on the cost of college education, which for decades has been rising faster than the rate of inflation, in part due to the ease of access to credit for students and their families for college education.

This would encourage current and future students to forgo repayment of their loan, assuming that if the number is high enough, Congress or the President will once again come to their aid and https://bridgepayday.com/title-loans-online/ write off the debt.

These are all good reasons to reject the idea of ​​student debt cancellation. But here’s another one. Although proposed by a Conservative, the argument should also resonate with the Liberals. Forgiving this unconditional debt, says Michael J. Petrilli, would end up hurting the very people who the Liberals say are most concerned.

Petrilli, president of the Thomas B. Fordham Institute, a think tank that focuses on education issues, notes that there are already several ways for those coming out of college or graduate school to get a part or all of their student debt. In fact, the Mississippi Legislature is considering creating a new program this year that would pay off $ 10,500 in student debt over three years for a new teacher, increasing the amount to $ 16,500 if the teacher is working in an area of ​​need. reviews, like the Delta.

There are all kinds of programs like these around the country, and not just for teachers. Similar incentives exist for doctors, nurses and lawyers who will commit to work in an area where their services are scarce. Loan forgiveness is also an effective recruiting tool used by the military.

If the federal government decides to write off student debt unconditionally, as President Biden and several other Democrats are proposing, those recruiting efforts will suffer. The same will be the case for poor or rural areas, which will benefit from the services of professionals who might not have come there otherwise.

As Petrilli concludes, the burden of student debt is real. However, the outright cancellation of this debt would be an opportunity. Instead, the country should develop the idea of ​​giving loan forgiveness in exchange for work in underserved areas. This would help the debtor while improving the quality of life in areas of the country where schools are struggling, health care is poor, and legal services are beyond the means of most residents.

Let debtors win their way in helping their country tackle some of its most difficult problems.

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