Why Canceling Student Loan Debt is Not a Social Issue, but a Political Strategy
There is a popular belief that forgiving student loan debt is a social issue. However, this notion is often a misconception driven by political agendas. In reality, it is more accurately characterized as a political strategy designed to win elections rather than a genuine social imperative. Let's explore this further in this article.
Confronting the Myths
It is often claimed that cancelling student loan debt is a social issue because a significant portion of the American population holds college degrees and has outstanding student loans. This perspective suggests a societal problem with systemic student debt. However, upon closer examination, this narrative becomes more complex.
According to recent data, while about 1/3 of the US population has a college degree, only a portion of those individuals actually have outstanding student loans. Many have either repaid their loans already or never took out loans to begin with. This points to another reality: many individuals who hold student loans do so due to poor financial management. Therefore, it is not fundamentally a social issue, but a case of individual responsibility and self-management.
A Political Strategy
To understand why the topic of student loan cancellation is more politically motivated than socially necessary, one must look at the context in which it is discussed. The escalation of college tuition rates by far outpacing inflation has created an environment where student debt has become a pressing financial concern for many young people. Yet, ironically, the problem itself has not garnered as much attention as the proposed solution.
The rhetorical question often asked is, 'If college tuition is increasing at an alarming rate, why is no one addressing the root cause of the student loan debt issue?' The answer lies in the fact that, when it comes to solving the problem, there is no audience or demand for it to be resolved. This indicates that the issue itself is not a social problem but rather a political opportunity.
Both Bernie Sanders and Elizabeth Warren, prominent figures in progressive politics, have used the issue of student loan debt to win support. While neither of them achieved their political ambitions, their approach succeeded in rallying young voters. The key to their strategy is the promise of free money, which is undeniably an appealing political pitch but not a sustainable solution.
The Financial and Moral Imperatives
The moral and financial imperatives supporting this idea are also questionable. Government-backed student loans, while sometimes helping students pursue higher education, can also be a form of predatory lending when not responsibly managed. Many students are exploited by the loan servicers and companies making the loans, as there is no incentive to ensure repayment. These companies receive commissions even when students struggle to repay the loans, and they can pile on additional fees, further indebting borrowers.
Moreover, the student borrowers themselves are often targeted with loans for expensive and non-viable degrees, with little or no accountability for institutions and lenders. The financial burden of these loans is heavy, and the proposal to tax the rich to pay for them is not a viable or sustainable long-term solution. In fact, it has been a well-documented, failed strategy that has not resolved the underlying issues for most borrowers.
Conclusion and Reflection
While the idea of forgiving student loan debt is appealing, it is more of a political strategy than a genuine social solution. Addressing the root causes of student debt and promoting financial literacy and responsible management are more effective long-term solutions. Young people should be encouraged to make informed financial decisions and not rely on the fleeting promise of free money.
As buzzing journalists and politicians continue to propagate the narrative of student debt as a social issue, it is important to maintain a critical perspective and recognize the political motives behind such framing. It is critical to reflect on the true nature of the problem and seek genuine solutions that benefit all, not just a political agenda.