Student Debt
As the amount of student loan debt has increased, some activists and politicians have called upon the federal
government, which holds the loans, to forgive some debt. They argue that the debt burden is inhibiting not only
advancement of the former students but of society as a whole. Rather than use excess income to buy homes
or otherwise boost the economy, former students must use it to pay of their college loans.
Opponents of forgiving some of the student debt say that the former students are getting the income benefit
that comes with the college education and that it would be unfair to tax payers, many of whom do not have a
college degree to pick up the cost of unpaid loans. They also note that millions of former students have already
paid off their student loans. Is it fair they had to pay, while current loan holders part of their loan forgiven?
Answer the following questions.
1. Do you believe that given that student debt is now only second to home mortgages in total individual debt
the government should consider forgiving some or all student debt?
If your answer is yes, give at least three reasons why you feel that way and explain. You must develop these
fully. You cannot just use a sentence on each and move on. A complete paragraph on each would be best.
If your answer is no, give at least three reasons why not and explain. You must develop these fully. You cannot
just use a sentence on each and move on. A complete paragraph on each would be best.
2. Even if your answer is no, if the government was to forgive some but not all student loan debt, what criteria
should they use. Give at least three criteria and develop your responses completely.
For example, first generation to attend college, career chosen such as educator v. medical doctor, etc. List at
least three criteria and explain why you feel that should be considered in the decision whether or not the
forgive the student loan.
3. If the government did not forgive the debt, do you believe that they should set the interest at 0% so that the
money is repaid, but it minimizes the total. If you agree, list at list one reason why you believe the interest
should be 0% and explain. If you do not agree, list at least one reason why you believe the interest should be
higher than 0% and explain.
4. Should colleges be limited in the financial aid that they can consider? For example, should a person be
allowed to attend TCU, an expensive private college, for an education degree paying for it solely with financial
aid. In this case, the student may find that they graduate with over $250,000 in debt while facing the potential
of an entry level job making approximately $50,000 annually? Or, should we prohibit colleges from allowing
students to get in debt for degrees where the pay is not proportionate to the loans they will accrue? If you
agree in limiting this, list at least two reasons why and explain completely. If you disagree, list at least two
reasons why and explain completely.
