A federal student loan forgiveness plan is unforgivable on many levels. Sure, times have changed, but principles shouldn’t.
When you sign a note to borrow money, you agree to pay it back. If education is important, funding it should be a priority. Government handouts are completely out of whack. This is how those in power buy votes.
In Sunday’s Gazette, a “duh!” An article titled “Student Loans Stun Wealth Building” indicates that many students regret their high school choices. Some would have chosen a less expensive school, some would have worked while studying, some would have gone to community college. Why didn’t they think about it before signing up?
Past stories have said that people who paid for their education might object to a forgiveness program. Totally right!
I owed $5,000 at 7% interest when I graduated in 1975, which was more than half the cost of my public education. My first job paid $7,200 a year, or $600 a month. Obviously, I couldn’t build wealth! But I had faith that education would reward me with higher incomes for life. I sacrificed to pay for my studies at $100 a month. In five years, I had no more debts and my income had doubled.
Translate that to today with inflation: $26,500 in loans, $37,900 in annual income, $527 in monthly payments. Difficult? Yes, like in 1975.
Earning an education requires brains. Paying for it should be a no-brainer.