The One Trillion Dollar Student Loan Debt Debate

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As the search for a solution to the one trillion dollar of student loan debt rages on, let’s not forget that this trillion is still in repayment: people are still making monthly payments on their student loans. The government and taxpayer are likely not going to lose all of this trillion. Most of the borrowers are repaying this debt. We may not recoup the entire trillion but more than likely we won’t have one trillion in defaulted loans. I’m writing this in reference to this article: http://www.mainstreet.com/article/moneyinvesting/education-planning/why-african-americans-were-denied-parent-plus-loans-colleg

It does not mean that an entire trillion is lost. The majority of borrowers are in repayment of their loans which will result in continual revenue for the government and taxpayer. It seems that people equate the 1 Trillion of outstanding loan debt with one trillion dollar loss for the government and taxpayers. This could not be farther from the truth. The majority of this debt is being recouped and is resulting in long-term revenue for the government and taxpayer. It’s like saying that all companies that hold mortgages will not get their money back over the next 15 to 30 years. It’s erroneous thinking. How about examining the remaining 16 Trillions of national debt and let’s see how that stacks up. Let’s see how that money will be paid back. Let’s not kill a fly with a sledge hammer.

Education is a good investment, a good debt to have as a society. I’d rather invest in that than in financing a war in a country we have no business entering. The majority of this trillion will be paid back with interest and fees by student and parent borrowers.

2015-06-15T13:54:01+00:00

About the Author:

Claire Law
Claire is an IECA Professional Member and a Certified Educational Planner (AICEP) located in Charleston, South Carolina.