Proponents of broad student loan debt forgiveness and those pushing to extend the moratorium on payments should know more. Many individuals and organizations advocating for total debt cancellation have long and distinguished histories of fighting for social justice. They were just wrong on this point: offering 100% over-indebtedness to very high-income workers with advanced degrees is not only fundamentally a terrible idea, it is also simply unfair.
Why should we as taxpayers pay the bills of those who have borrowed money knowing full well that they will have to pay it back? The moratorium on loan repayments, which already spans more than two years, was a temporary necessity at the height of the COVID-19 pandemic. But we are no longer in March 2020. The aid policies of two years ago are no longer needed – we need forward-thinking solutions that will continue to create jobs and curb inflation. Extending the pay break for six-figure earners does neither.
Just as I am repaying my college loans – as millions of others have done through recessions, the trauma of 9/11 and other cataclysmic events – so is this generation that now feels it has somehow entitled to entitlement relief, regardless of their income and whether or not they give back to their community.
The student loan moratorium is set to end as scheduled on August 31. If a borrower is a teacher, lawyer or doctor who makes economic sacrifices to serve low-income communities, they should receive relief through the Civil Service Loan Forgiveness Program, which more people must know. But, if a young person has borrowed money and is making hundreds of thousands of dollars in the private sector, then that person should work in good faith and repay their loans.
To his credit, President Joe Biden – with the help and support of the senses. John Hickenlooper and Michael Bennet, and US Representatives Joe Neguse, Ed Perlmutter, Diana DeGette and Jason Crow – took strong and aggressive action to protect and relieve students. – lending to borrowers in need in an appropriate manner. President should step up efforts on targeted relief and reject broad reprieve — it’s time to restart the program. If he wants to get to the root of the problems plaguing student loan borrowers, then he should focus on reducing tuition fees or expanding Pell grants so more can afford college.
The loan moratorium, which has been in place since March 2020, is contributing to inflation and needlessly costing taxpayers, including Coloradans, $15 billion per quarter. This general suspension of refunds is unfair. It’s unfair for people who skipped college to enter the workforce early, who are now financing the debts of the wealthy. Our union friends who worked full time while learning to become pipe fitters, plumbers, electricians or heavy equipment operators in apprenticeship programs are asked to pay off the debts of those who chose to borrow funds for college .
Our Federal Legislators in Washington, DC, especially our Great Senses. Hickenlooper and Bennet, should push the administration to resume loan repayments with just exceptions for those who truly give back to our country and their community. They should recognize that the public sees through the elites pushing this moratorium and how fundamentally unfair it is. Any elected official who puts the interests of high-income borrowers above working families definitely runs the risk of incurring the ire of voters across the spectrum in November — which I don’t want to see.
A clear and definitive date to resume repayment will have the added benefit of encouraging borrowers to explore all available options and refinance their debt now at lower rates before the Federal Reserve decides to raise them again.
It’s time to end the student loan moratorium for all the reasons listed and more. But, above all, it must stop because it is unfair. Of all the values the Democratic Party must uphold, fairness must always be at the forefront.
Maya Wheeler is currently the Executive Director of the Colorado African Chamber of Commerce. The African Chamber of Commerce is the premier platform and trusted voice connecting the greater Colorado region to the African continent for business development aimed at creating growth and investment by empowering Colorado’s African business community.