Some presidential hopefuls want to eliminate student loan debt. Snapping their fingers over more than 1.6 trillion dollars, forgiving the complete debt. This wouldn’t be a similar situation to bankruptcy, where you have to qualify and show that there's a reason you can't afford to pay the debt. Students didn’t know what they were getting into, and now they've got a ton of debt in their hands. The thing is, there seems to be zero accountability for this, and it’s unacceptable.
When I was 18 years old, I made a choice to join the US Army Reserve, so I could live on my own and pay for my college. I knew what student loans were, that you’ve gotta pay them back, there was no magic wand to help it all go away.
Making different restrictions on student loans should be the way to go. Setting different roadblocks, where real education must be a priority. When you're getting a mortgage or a reverse mortgage, you have to do counseling. You have to go through a phone call, explaining your finances and getting guidance on the ins and outs. You ask questions, you go back and forth until everything is clear as day.
Imagine if we did this with student loans, and a specialized counselor said: “Do you know that if you take this next $20,000, on top of your other $100,000, your payment is going to be X amount? And when you’re making X amount, it’s gonna take you “this” many years to pay? You’re never getting out of debt!”
But, forgiving the student loan? Why are we gonna take taxpayer’s money that can go to more proactive choices.
Then, we should start forgiving mortgages... Impossible, right? But what about education and counseling? This is completely possible and necessary. All kinds of students from high school to college should be receiving basic finance and economics education, regardless of their individual career goals. This is my take on it, but I think students, teachers, and any average taxpayer could get behind this idea.
Thanks for reading! Let me know what you think, I’m here to help!