Is Student Debt Cancellation Really A Good Idea?

Student Debt

There are 44 million people in America who have student loan debt. Many of the Democratic presidential candidates have announced that they plan to erase all student loan debt if they become president. Bernie Sanders believes that the entire $1.5 trillion debt should be cancelled. He also believes that there should be no criteria for student loan forgiveness.

Elizabeth Warren also wants to cancel student loan debt. She wants to cancel up to $50,000 for people who make under $100,000. She also wants to eliminate all private student loan debt.

This may seem like a wonderful idea if you are dealing with student loan debt. However, not everyone agrees with this idea. The people who are for this plan believe that student loan debt should be forgiven because it is preventing many people from buying homes. They also state that student loan debt is disproportionately affecting people of color. Furthermore, they argue that student loan debt is a national crisis.

Opponents of student loan forgiveness argue that it is nothing more than just a wealth transfer plan. They also argue that the taxpayers will have to cover the massive debt. Additionally, they believe that if you borrow debt, then you should have to pay it back. They also state if people cannot get credit card or mortgages forgiven, then they should not be able to get student loan debt forgiven.

Some people also point out that student loan forgiveness is unfair. They say that it is unfair to the millions of people who have already paid back their student loan debt. Furthermore, some people say that the colleges and universities should charge fair rates in order to reduce student loan debt.

Other candidates have proposed other solutions such as tuition-free college, public service forgiveness and allowing people to cancel student loan debt by filing for bankruptcy.

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