The November/December topic for Public Forum Debate is “Resolved: The United States federal government should forgive all federal student loan debt.” This is an ideal topic for high school students and their parents to explore, with college expenses continuing to rise, and families stretched to provide the monetary support to enroll in the colleges of their choice. As of this year, American students owe over $1.7 trillion in student loan debt, with many people taking years to pay off their loans and to make commitments to marriage, buying homes, and building personal wealth.
During the pandemic, the federal government excused recipients of loans from paying the interest on their federal educational loans, but now those payments have resumed. While forgiving debt may seem to some as an unearned privilege, many economists suggest that debt forgiveness would stimulate the economy and lead to growth; at the same time, to those who have paid off their loans, it seems unfair as well as an incentive for colleges to continue raising their tuitions.
The Manchester Essex Education Fund is holding its annual fundraising campaign, so this topic is directly relevant to all college bound students. The following is a discussion of the primary issues Manchester Essex Debate has been exploring in their research. Please feel free to offer comments and suggestions.
PRO: Why Supporting College Loan Forgiveness is Good
To begin, the topic requires a thorough knowledge base on student loan debt and how the federal government is involved with it. When students take out a loan, they borrow money (either from the government or a private lender) to pay for college tuition or other educational expenses. In this particular debate, debaters would be focused on the governmental role in student loan debt relief. According to the 2023 U.S. Student Loan Debt Statistics on Credit.com, by the end of 2022, the Federal Reserve announced that about 43.5 million Americans have student loan debt. This amount totals over 1.7 trillion dollars, with each borrower owing an average of $37,787. Unfortunately, student loan debt has more than doubled over the last two decades, a fact that would likely be included in a PRO case -- to cement the idea that while some of the older generations may view relief of debt as unfair, college tuition rates have risen faster than the average income, thus making it more difficult to pay off debts. Furthermore, PRO might argue the issue of defaulting. When one defaults on their student loans, the entire unpaid balance and interest owed is immediately due (a process called acceleration). Furthermore, said defaulter can no longer receive deferment (postponing paying temporarily) or forbearance (stop making payments/or lessen monthly payments for up to one year). The defaulter will lose eligibility for other benefits like choosing a repayment plan and will receive a lower credit score and wage garnishment (one’s wages are legally required to be held by employers for the payment of a debt). So, with that, what are a few main PRO arguments? The first may be national debt slowing the economy and forgiveness boosting the economy. This is because student loans limit consumer spending thus limiting the growth of new businesses. Theoretically, forgiveness of student loans would make the economy easier for people to participate in. Another argument that could be made is that by having to pay back student loans, one’s life is also pushed back. People are held back from marrying, purchasing a house, having children, etc. With student loans forgiven, people would be able to engage in more productive citizenry.
CON: Why College Loan Forgiveness is a Bad Idea
When discussing the forgiveness of student loan debt, it is also important to consider the potential repercussions it would have on the nation.
Instead of fixing the root cause of rising debt due to student loans, forgiveness only offers a temporary solution.
The larger issue at hand, which is inflated college tuition prices, would not be addressed by the one-time forgiveness of student loans. In fact, forgiveness may even exacerbate the problem.
If the government creates the expectation to forgive student loan debt, then students will be far more willing to take out student loans to cover their tuition costs.
With more students able to pay tuition costs, there will be no incentive for U.S. colleges and universities to slow or halt rising tuition costs.
This is particularly important because college tuition prices are already unaffordable as is. Rising prices only exacerbates this problem.
As Michael Smith wrote in his 2022 article for The Hill, “Since 1978, college tuition has increased by 1,375 percent, more than four times the rate of inflation. By focusing on debt forgiveness rather than what caused the debt, we’re treating the symptom rather than the disease.”
Unfortunately, the high cost of college impacts low-income students the most.
As Jon Marcus and Fazil Khan wrote for their 2023 article in USA Today, “At two out of three colleges and universities where the net price increased for both low- and high-income students over the past decade – that is, the amount paid after discounts and financial aid – it rose faster for the lowest-income students: about 70% versus 27%, on average, the federal data shows.”
Higher education is one of the best paths out of poverty. Without access to it, low-income students are far more likely to be trapped in poverty.
These long-term impacts must be considered when weighing the potential benefits of forgiving student loan debt. Additionally, it can be argued that student loan forgiveness is unfair. The debt must be paid from somewhere; with all likelihood, it will be society’s taxpayers.
This would hurt the pockets of average Americans, many of whom had to pay back their own student loan debt. Those who paid back their own debt were held responsible for their own personal economic decisions. However, with student loan debt forgiveness, the loan system is undermined, and people would no longer be held accountable.
Gwendolyn Berger and Stella Straub are juniors on Manchester Essex Regional High School Debate Team. Point / Counterpoint is a regular feature in the Manchester Cricket by the debate team. Readers who would like to respond or follow up with the team, please email news@thecricket.com.
