by Bethany Torstenson
Digital Manager and Writer, John Locke Foundation
According to Department of Education figures, an estimated 1.4 million North Carolinians currently owe student loans, contributing to the Tar Heel State ranking as the eighth highest state on the average amount of student debt owed, with the average borrower owing $37,920.
The U.S. Department of Education recently announced they would forgive $39 billion worth of student loan debt for more than 800,000 borrowers, just weeks after the U.S. Supreme Court struck down the administration’s previous student debt plan in Biden v. Nebraska.
In a 6-3 decision, Chief Justice John Roberts noted that the administration had no legal authority to forgive student loan debt without Congressional approval.
President Biden’s new SAVE plan will cost nearly $559 billion over the next ten years. This figure exceeds the projected costs of $276 billion previously reported by the Congressional Budget Office (CBO).
Some truly staggering figures if you ask me.
Amid this Supreme Court decision, President Biden is not backing down and has found a way to go around the Supreme Court and offer student loan bail-out by executive order- an act many call unconstitutional and unethical.
A few thoughts:
I find this troubling as a former student with a fair amount of student loans.
I attended a private institution, knowing I would pay substantially more for that education. A decision that I was willing to make because my education was important to me. I didn’t expect any government handouts or assistance to fund my education. I made the decision; I was expected to pay for it.
However, I find the more significant problem to be what will come and the precedent this sets for future borrowers and, more importantly, the American taxpayers.
Think about the hard-working Americans who sacrificed financially for years, setting aside a little bit each month to send their child to college. Or those students who worked two or three jobs throughout college to pay their tuition were happy to do so because they valued the gift of education.
Why save up to pay for college when the government will force your fellow taxpayers to bail you out?
I fear that the younger generation will learn the way to go is to spend now, rack up high debt, and let others bail you out later.
Morals are essential, and I worry that this student loan forgiveness plan will do away with the principles and importance of hard work and sacrifice.
Personally, I find great satisfaction in being able to pay for my education. It made me appreciate it more.