Suppose you never took out a loan for your university education; instead, you completed your studies with the help of your parents, by working a job, or through some other means. Now, the government suddenly announces that all student loans in the country are being forgiven. While this is seemingly excellent news for those students, the government also states that additional taxes will be levied on the public to cover the cost of these loans. The question now arises, would you accept this decision?
This question appears quite simple on the surface, but the matter becomes far more complex when we consider both sides of the issue. On one hand, there is the student who takes out a loan to complete their education and spends years paying off both the principal and the accrued interest. On the other hand, there is the person who never took out a student loan but may now have to pay higher taxes to cover someone else's debt. In my view, this is the most difficult aspect of the topic.
In today's world, obtaining a quality education is not easy for many people. Beyond university tuition fees, there are expenses for books, transportation, accommodation, and other necessities. Not every family is financially strong enough to bear the full cost of their child's university education. In such circumstances, a student loan becomes an option. A young person might enter university at the age of 18 or 19 by taking out a loan, often without realizing the extent of the financial burden they will face in the years to come. After completing their education, they must find a job, start their life, and meet other financial responsibilities, all while making monthly loan repayments. The most difficult aspect is the interest, if repayment takes a long time, the interest accumulates alongside the principal amount.
But then, the question arises: what is wrong with forgiving debt? If a personβs debt is cleared, it can make a significant difference in their life. They can save the portion of their income previously used for debt repayment to buy a home, start a business, support their family, or save for the future. Education benefits not just the individual but society as a whole; a doctor, teacher, engineer, or researcher impacts the lives of others through their skills. Viewed from this perspective, some might even consider the elimination of student debt an investment in society.
But then, a major question arises: who will foot the bill for all this? Consider two individuals. One took out a university loan and, through years of hard work, paid it off completely. The other also took out a loan, but a few years later, the government waived it. Now, if the government raises the first person's taxes to cover the cost of the second person's loan, would that be fair to the first person? He fulfilled his obligations, curbed his desires, and made loan repayments for years. If he is subsequently required to pay higher taxes, he might well wonder, why am I being penalized?
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It is also important to consider those who never attended university. Not everyone goes to university; some begin working after school or college, others pursue vocational training, some join family businesses, and others are unable to pursue higher education due to financial constraints. If everyone were to be taxed more heavily to eliminate student loans, would that be fair to these individuals? On the other hand, society involves many things that do not directly benefit every single person, yet people pay taxes for them. Therefore, simply arguing, "I didn't use this, so why should I pay tax for it?" does not always constitute a complete argument.
In my view, this debate shouldn't be limited to a choice between either forgiving all student loans or providing no assistance at all, there are middle ground solutions available. The government could offer greater support to low income borrowers, lower interest rates, and structure repayment plans based on individual income levels. At the same time, efforts must be made to make university education more affordable in the future. After all, even if we were to wipe out all student debt today, the underlying issues regarding the cost of education and loans would remain; consequently, a new generation could find itself facing the same predicament a few years down the line.
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If I were asked directly whether I would accept student debt cancellation despite a resulting tax increase, it would not be easy for me to give a simple "yes" or "no." I can empathize with the plight of students who have been repaying loans for years, especially as interest causes their debt to grow, but I also understand the perspective of those who never took out student loans or have already paid theirs off. Levying additional taxes on them to wipe out someone else's entire debt does not feel fair in every respect.
That is why I believe that instead of complete debt cancellation, greater emphasis should be placed on needs based assistance, lower interest rates, improved repayment systems, and making future education more affordable. Student loans are not merely a financial issue; they encompass education, the future, personal responsibility, societal benefit, and fairness. Education is certainly an investment, but the entire burden of that investment should neither fall solely on the student nor be indiscriminately shifted onto every taxpayer.
Perhaps the real question isn't "Should student debt be forgiven or not?" The real question is, "How can we create a system where a quality education doesn't plunge a young person into lifelong debt, and where the solution to this problem doesn't become a new burden for others?" In my view, this is the question we should be considering more seriously.
