Student Loan Debt Suppress Upward Mobility for New Generations
Some Democratic candidates are addressing the student loan debt crises by proposing free college tuition and student loan forgiveness. However, Republican politicians and commentators are proclaiming these ideas are socialist and an easy bail out.
The critics of the proposals suggest that "giving" people free things and forgiving debt makes people unaccountable and irresponsible, and that may be true in some cases for certain people. However, the consequences of not forgiving debt and charging people more than they can afford is taking a more drastic toll on society as a whole.
Having to repay loans with enormous interest rates reduces disposable income causing recent college grads to delaying major purchases such as homes and cars and not being able to save money. Reports also conclude that the job market does not compensate for the degrees college grads obtain.
This cycle frustrates people and they feel hopeless and powerless, not to mention stifles an entire generation. Proposals from Democrat candidates such as Elizabeth Warren suggest "her plan would become an "enormous middle-class stimulus" that would boost economic growth, increase home purchases and create more small businesses, the Massachusetts senator said. It would also increase wealth for minorities, adding a $50 billion fund to help historically black colleges and universities."
The plan is more of an investment into the future of the next generations than it is a bail out for them. It is better to forgive and free people from bondage than it is to strong arm them into servitude.