It’s easy to see how student loan debt forgiveness became another wedge issue that divides Americans.
It’s harder to understand why so many people resent government programs that help millions of workers make ends meet.
Fox News captured the sentiment Wednesday in a report about President Joe Biden’s plan to forgive $10,000 in student loan debt for individuals earning less than $125,000 per year. Pell Grant recipients may qualify for up to $20,000 in relief.
“Many hardworking, play-by-the-rules Americans have diligently paid off their student loans as a matter of personal responsibility,” Fox reported. “They believe in taking care of their obligations; for them, it was and is the right thing to do.”
Some people experience resentment if their sense of fairness feels violated.
“Why should others receive free health insurance coverage when I have to pay for mine?” someone might say.
Another might complain about people who receive free “Obama phones” or internet service because they’re poor. Ronald Reagan famously stoked resentment about a “welfare queen” during the 1976 presidential campaign.
Resentment about others getting something for nothing is nothing new. So why don’t people feel the same resentment about corporations and ultrarich people who exploit loopholes to escape paying taxes?
Some who complained on social media Thursday about people receiving $10,000 in student loan debt forgiveness were themselves beneficiaries of $100,000 or more in debt forgiveness through the Paycheck Protection Plan.
“Government assistance is good for me, but bad for anyone else,” some seem to say.
Employers love it when employees have a lot of debt. Good little workers who owe lot of money for mortgages, car payments, credit cards, health care and education tend to keep their noses firmly affixed to the grindstone.
Most Americans live paycheck to paycheck. Many adults deal with the stress of unpaid bills their whole lives. The American Dream of working hard, getting ahead and being able to retire comfortably is vanishing like a mirage for many.
Studies show millennials are on track to be the first generation in American history not to exceed their parents in terms of job status or income. A lack of affordable housing and other factors are to blame, including the soaring cost of higher education.
“More than 43 million people have federal student debt, with an average balance of $37,667,” The Associated Press reported. Americans owe nearly $1.7 trillion in student loan debt. Biden said his plan may help up to 20 million Americans.
How did we get here? Illinois and most other states have slashed spending on public universities for years. Institutions hiked tuition and helped students secure loans. Studies show that people with college degrees earn $1 million or more during their careers than peers without degrees.
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Student loan debt became a notable political issue for other reasons. People with college degree tend to vote for Democrats. Republicans, of course, figured they could boost their chances in future elections if fewer people had college degrees.
Corporate profits are soaring, workers are struggling and wealth disparity negatively impacts more people than ever before. The notion of fairness is relative and is easily distorted by messages that are intended to make people feel resentful of others.
Many pundits say Biden’s student loan debt cancellation plan fulfilled a campaign promise but was a no-win politically. Conservatives now have a new reason to complain about welfare and deficits, and progressives say Biden’s executive action falls far short.
Leaders of the NAACP called on Biden to forgive at least $50,000 in student loan debt per person.
“Biden must recognize and regard student debt as a racial and economic justice issue,” they wrote in an op-ed for CNN. “After generations of racial oppression, it would finally open the door for so many Americans to become homeowners and generate wealth, not only for themselves, but also for their children and grandchildren.”
Biden’s plan also caps student loan repayment costs at 5% of someone’s monthly income. Critics said Biden should have done more to cap interest rates on student loans. The current rate to refinance student loan debt is 5.84%, MarketWatch reported Wednesday. Inflation could drive interest rates even higher.
Why does the government charge such relatively high interest rates to those who need to borrow money for education?
Forgiving student loan debt is like a treatment for a disease, not a cure. Moving forward, solutions that could address the high costs of higher education include offering free community college for all and increasing state investment in public universities.
All Americans deserve access to affordable education, housing and health care.
Ted Slowik is a columnist at the Daily Southtown.