Student Loans

March 3, 2021

One of the major debates in Washington today involves relief for debt-burdened students. Progressives are proposing debt relief of $50,000 per student. President Biden is at $10,000 with proposals for free education at community colleges. Conservatives are not part of the discussion. I am okay with whatever proposal makes it through as long as it is based on need. It needs to be targeted aid, and not a shotgun approach.

I made it through college with no debt when tuition, room and board were approximately $3,000 per year. My parents paid the portion that was not covered by financial aid. For spending money, I did what I had to. I flipped hamburgers, worked in factories, drove a cab, cleaned dorm rooms and toilets, baby sat for the children of alumni, and offered my body to medical science. Loans were not part of the package. However, graduate school was a different story. We had substantial loans that had to be paid off, which we got done after several years. Because we paid off our loans, you may be thinking that I am totally opposed to student loan forgiveness, but I am not. Things change.

The staggering amount of debt that many students graduate with today is not comparable to what it was. The cost of a college education has grown much faster than average incomes. Financial aid and loans help at the elite schools, but there is no trickle down economics in education. Unless the school you go to has a multi-billion dollar endowment, you are dependent on parents, scholarships, student loans, and term-time work. Excessive debt affects employment choices, quality of life, and the ability to consume. It is clearly a direct result of income inequality, which then gets exacerbated by students unable to continue with their studies. If a worthy student needs a break, it’s okay with me.