Let me preface this discussion by stating this is NOT a blanket forgiveness policy for student loans that I am promoting. I wholly believe in the idea of paying back the dues that were borrowed during the pursuit of education, however, I do believe the means of paying back what was borrowed has become entirely inflated and unmanageable in its current state.

 

A short summary of my experiences

I initially attended a private college to pursue a bachelors degree in the STEM field of Meteorology. After achieving my degree in 2009, I went further and obtained a Master's Degree of the same major in 2016. At the end of my education, I was approximately $112,000 in debt. Through several years of payments, along with the chaos that the government has applied to the student loan situation, I have approximately $124,000 of student loan debt. Thankfully, I am currently employed in a field that utilizes my degree and I am able to support my family. Even though I may be financially stable at the moment, I am unable to actively keep up with the IDR payments required to tackle even the interest accrual that the loan company demands.

This is not a cry for a help, or a grab for social attention, this is just a description of what I am experiencing in regards to the student loan crisis. I fully understand that there are those out there who are struggling much worse than I and this is my attempt to help offer ideas on how the system could be better managed to help everyone.  

 

Potential Corrections for the Path of Student Loans

Currently, student loans have been left in the dark recesses of Congress' back pocket as no-one wishes to approach the subject. It is my hope that this thread can reignite conversations and bring the subject back to the forefront of attention in legacy media, or better yet social media. Below are three potential regulations that I believe would help to stabilize the situation. Please note that I have no political or economical background on these subjects, therefore the points below are meant to spark conversations and help to wade through controversies that some may have.

1) Equal Payments: In this scenario, the government will match what you pay into the loan. This would be an accelerated version of paying back the loan while the loan company itself would still receive payments. Ultimately, this method is meant to reward those who pay into the system while not placing a giant burden on the tax payers. 

 

• Pros
  - Reduced monthly payments required from the borrower
  - Loan companies still receive required payments
  - Faster potential decrease in interest accrual and loan payoff
  - Less initial burden on the tax payers
• 
  Cons
  - Tax payer money will need to be invested into the system
  - Government intervention will need to be heavily managed to ensure funding is available
  - Bills will need to be enacted to force loan providers to allow the new payment system

2) Interest Caps: A large issue with student loans is that there does not seem to be an effective cap on the amount of interest the loan providers can tack onto the initial loan. A new regulation I am proposing is to have the government enact a bill that caps the interest for student loans to be 10% of the original loan amount. 

For example, let us say that a loan of $1000 was borrowed. If the 10% bill was enacted, the most that the loan provider could add to the loan would be $100 regardless of payment status. 

 

• Pros
  - Borrowers will be paying directly toward the loan instead of constantly accruing interest
  - No direct government or tax payer investment
• 
  Cons
  - Loan providers will see less return and would be more apt to reject this methodology
  - Loan providers will more than likely need to implement heavy late fees as an interest replacement
  - Borrowers may see this as a reason to take more loans than necessary
  - Larger payment options may be enacted to offset the loss
   

3) Partial Forgiveness: This method will be the most controversial for everyone. I can understand the hesitation to just give those who borrowed money a "pass", but this forgiveness policy is not meant for every Tom, Dick and Harry in America. This policy would target those who have pursued a career in the private or public sector related to their major. 

I am proposing that the government "forgive" 50% of the original loan, or up to a maximum of $40,000, whichever is lesser. The catch is that this would not apply to every individual who currently has student loans. Instead, it would be an application that has to be submitted to the government. The application would require that the individual applying for forgiveness has to have had at least five years working in a field related to their major, or of an equivalent status. This would show that the applicant had used their major to actively participate in moving America forward.

 

• Pros
  - Instant payoff relief for borrowers
  - Borrowers may be more inclined to pursue degrees that have available jobs in the field
  - True trackable statistics for national involvement 
  - Possible government job increase for application processing
  - Staggered government payments due to application processing
• 
  Cons
  - Although staggered, it may require heavy initial investment from tax payer money
  - Ethical issues surrounding forgiveness policies
  - Targets individuals who have been able to obtain a career, thus a portion of the individuals may not be capable of applying even though they have a reasonable degree
  - Strong chance of delays or rejection from government bodies
  - Only a temporary fix for the current loan crisis
   

 

Wrap Up

It is not my intention to provide solutions without knowing the full knowledge required surrounding the above suggestions. I believe the above options I had listed above could be used in tandem with each other, providing a more succinct and effective resolution to helping mitigate the student loan crisis.

My only hope is this petition will serve as a springboard to help push the subject further into the forward facing media. I welcome discussions, criticisms and even disagreements. All I ask is that when you approach this topic, you discuss it in a manner that is logical, friendly and helpful in order to increase the cooperation and advancement of this initiative. 

I wish you all a wonderful day and I thank you all for helping to fix America one step at a time!