Finding the center in any issue can seem impossible considering the sharp divides we see in today’s world.
Yet, when you look past the ‘doomsday’ messaging that airs every night on the news along with the onslaught of misinformation running rampant on social media– when you connect with people in a real, meaningful way– you’ll find that our differences aren’t as stark as you might think.
Take, for example, the raging debate over student loans.
The media would have us believe that the choice is black or white. Either we completely forgive everyone’s debt and move to a “free college for all” model, or we go the opposite direction, and start charging tuition for all schools; public and private alike. No tax dollars = no fight.
Well, when it’s presented like that, it’s no wonder the issue becomes politicized.
In one corner, you have Republicans passionately claiming, “Look, I chose to go into a trade because I didn’t want to pay an arm and a leg for tuition. So, why should I be responsible for paying someone else’s? If they take out a loan, then they need to pay it back.”
In the other corner, Democrats argue that, “Education is a basic human right. We’re the richest country on the planet, yet we load our young people up with so much debt that they’re entering the workforce already financially behind. We should be providing higher education to everyone, just like other countries do.”
Here’s the thing, though– since both corners are part of the same ring, we have an obligation to seek the middle. To do that successfully, we have to understand the nature of the fight:
Imagine taking out loans to pay for three years of college before dropping out and citing “Money” as the reason you can’t continue. Or even worse, you’re a few credits shy of graduating when a personal tragedy strikes and you’re forced to get a job instead of completing your education. What about the person who gets a degree in a field that doesn’t pay a lot?
For anyone in those or similar circumstances, you’ve seen first-hand how broken the system really is. Unless you have grants, scholarships, or enough money to pay for school yourself, you’ll most likely end up with a lifetime of student loan debt.
On the flip side, what if you entered the workforce with even less than a high school diploma because your family needed your help paying the bills? Or you grew up in a town where everyone goes to work for the factory or mine anyway, and education really isn’t necessary? How can anyone blame you for not wanting to pay for someone else to go to school?
Both positions are valid. So, perhaps the problem isn’t with people’s beliefs, but with the student loan system itself. How might it be contributing to the problem?
Well, for starters, student loans don’t work like any other loan types.
In fact, they’re the only ones I know of that can be deferred for months or even years on end! Can you imagine if your mortgage lender allowed that? You call them up and say, “Hey, I lost my job and can’t make my payment anymore.”
And they say, “Oh that’s fine, just fill out this questionnaire and you won’t have to pay it back for ten or twenty years.”
Sounds ridiculous, doesn’t it?
Yet, that’s exactly how student loans work. If you stay on top of it, and make it a point to re-apply for deferment or forbearance every few months, then it’s possible to push your payments off for years.
The biggest problem with doing that– and another reason student loans are so predatory– is that they accumulate interest the entire time!
So, if you originally owed $100K, but ended up deferring your loans for a few years, then you might find yourself in a situation where you now owe $150K. Well, if you’re in one of those scenarios we talked about earlier, where you dropped out of school without getting your degree, then odds are good that you’re also not getting the higher income that you would have been getting if you’d finished school.
In addition, student loans are the only loan type I’m aware of that can’t be included in bankruptcy. So, if you can’t pay them back now, then not only will they get more expensive in the future, but you’ll also be stuck with them until you die.
The math just doesn’t work.
-Dastem
Here at the Dantian Project, though, we strive to come up with solutions, not just point out problems. Thus, the question becomes: Is there a way student loans can work for everyone?
One suggestion has already been made: Just make them work like regular loans.
This means (among other things) that there should be a meaningful qualification process.
Instead of handing them out like Halloween candy to anyone who dresses up like a student, why not put a little regulation behind it? Here are a few suggestions:
- Cap the amount of the loan by degree type (based on market value)
- Institute a minimum credit score (which federal loans don’t currently require).
- Make companies that require their employees to have a degree subsidize that degree through taxes or grant programs.
- Throw out the deferment program, ongoing interest accrual and inability to include them in bankruptcy.
Changes like these would make an instant difference moving forward. And, for anyone who’s already buried in student loan debt, perhaps we can also split the difference in the forgiveness debate by at least forgiving the interest that has accumulated on existing loans.
Common sense solutions are what ‘finding center’ is all about. That’s where our debates should focus…
So, while this list is in no way complete, it at least offers a starting point as to how we can begin to repair the existing student loan catastrophe. What bullet points would you add to the mix? Which would you take away?
I’d love to hear your thoughts!
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