Stepping into office in 2020, one of Biden’s most substantial promises was reducing student loan debt. Four years later, it is difficult to say whether Biden was able to create a substantial impact. Even more challenging is determining whether student debt cancellation is beneficial.
Republicans and Democrats stand on opposite sides of this issue. While the effectiveness of this tactic is debatable, there is one fact both parties cannot deny — college tuition and student debt, remain factors crippling the younger generations.
Student debt relief may not be the hero the economy deserves, but ultimately the one it needs.
Increasing Tuition
For non-residents attending the University of Utah, freshmen year boasts a cost of more than $60,000 when factoring in tuition and dorm expenses. If that wasn’t bad enough, prices increased in the 2024-25 school year, with a 3.28% spike in tuition.
Utah is hardly alone in this. College tuition has a long history of steady increases in prices. Nationwide, college as a whole remains largely unaffordable, especially amongst marginalized groups. While avenues towards success outside of the college experience have been increasing, they remain the most revealing factor in lifetime earnings.
While opting out of attending college is an option, it’s not always the best one. It is possible to find greater success without a degree, but for the majority of people, it’s hardly realistic. Blaming students for taking on debt is hardly reasonable despite it statistically being their best option.
The Case Against Student Loans
Opposers of student debt relief arguments also have substantial merit.
Legally, the concept of debt relief has been an uphill battle for the Biden administration. In 2023, the Supreme Court ruled 6-3 against Biden’s student debt relief program.
Economically speaking, student debt relief is regressive in assisting low-income students. Data suggests high-income households hold more debt than their lower-income counterparts. This means debt relief may only serve to widen the wealth inequality gap.
Although supporters of debt relief have worked to address this issue, it remains a prevalent aspect in the fight for debt relief. After all, individuals choose to take on debt to attend college. Demanding others help repay those loans appears unreasonable at first glance.
The Essence of Fairness
Blaming the individual for their poor economic decisions regarding loans may be morally logical, but it is unsustainable.
As of September 2023, borrowers owed upwards of $1.7 trillion. Many individuals feel it is not the government’s responsibility to assist in relieving this debt. Regardless, the negative impacts this has on the economy is undeniable.
A large portion of borrowers are under 40 years of age and represent the country’s most active contributors in the workforce. Leaving these individuals to fend for themselves not only hurts them but everyone collectively.
It is not a suitable argument for those who have managed to pay off their debts to claim it is unfair to relieve others of their financial burdens.
Financial debt is directly correlated to mental health struggles and an inability to reach important life milestones. Suggesting younger generations ought to deal with debt simply because their predecessors did is nothing short of closed-mindedness.
The Best Answer for Now
It is hard to argue student debt relief by itself is a cure-all for the financial struggles many Americans currently find themselves in. While it’s tempting to view any debt relief as beneficial, it is important to remember the repercussions of thoughtless loan forgiveness. That said, it is not an issue that can be ignored.
It remains true that college is beneficial to most students, and in turn necessary for some to take on risky loans. Debt relief is merely a band-aid on a system that overcharges its constituents in return for the promise of future success, success that cannot be guaranteed. Despite this, it is the only remedy currently at the country’s disposal to combat this issue.
Until the system changes to offer the benefits of college at a universally affordable rate, debt relief cannot be written off as an unrealistic decision.
m.timpa@dailyutahchronicle.com
The post Opinion: Student Debt Relief is a Necessary Evil first appeared on The Daily Utah Chronicle.