Recession grads to get financially screwed by student loan forgiveness

Hate Student Debt

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Jun 16, 2019
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As someone who entered the job market at the height of the last recession, this topic is dear to my heart.

Studies show that recession graduates

- Have lower lifetime earnings than their non recession counterparts

- Have higher rates of divorce and childlessness

- Have higher rates of substance abuse and deaths of despair

- Have an average of 6% higher mortality rates (!!)

With this is mind, it almost seems like something should be done for this generation, right? At the very least, the struggles should be acknowledged and not made worse.

Let’s discuss how student loan forgiveness factors in.

Student loan forgiveness benefits recent graduates most. Those of us who graduated in 2008-09 have already paid back a huge amount of student loans (in some cases all). Someone who graduated in 2018 will see 80%+ of their loans forgiven compared to someone who graduated in 2008 who will see 20% of theirs.

When you consider the preexisting financial strain of graduating into a recession and add student loan forgiveness to the mix, it becomes clear that loan forgiveness will widen the inequality gap between middle millennials and gen-z.

To make matters worse, when we bring up these concerns to proponents of student loan forgiveness we are often dismissed. It’s seen as selfish for us to want an equal financial playing field.

I also don’t think most folks who are for total loan forgiveness realize the huge financial burden it’ll place on the country as a whole. Not only will I be paying for debt relief, so will millions of Americans who never graduated from college. Also kids graduating in 2019-2020 will be entering the strongest economy in the last decade. Does total loan forgiveness make sense?

UBI sounds like the best solution. It’s paying all Americans, whether they didn’t go to college, worked their way through college, paid off their loans already, made sacrifices in order to graduate, dropped out or graduated.

Sorry if I sound kind of bitter Yang Gang. This topic has been bothering me for a while. I know it’s a touchy subject among millennials. But this needs to be said. Total debt forgiveness is grossly unfair.
 

Wolfenstein

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Jun 22, 2019
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Thanks for commenting. Yeah based on the reaction to my post it feels like we’re in the minority... but I also wonder if others just forgot.

My husband jokes that once college is free he’s gonna go take cooking classes for fun. I laugh but he’s not too far off on what’ll happen.
 

Coatsink

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Jun 22, 2019
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You’re free to vote for who you want. My main issue are Sanders supporters who think his policies will help the lower class when it’s been shown that total student loan relief does the opposite.
 

DOOM Eternal

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Jun 22, 2019
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He doesn’t say the government should forgive it or that taxpayers should pay for it.

One of his plans is to ask colleges to forgive loans for students who never graduated.

Another is to over a repayment plan so you’d pay back 10% of your salary over ten years then have the rest forgiven.

He says the government should not profit off of student loans. That means reducing the interest rates, possibly to zero.

He does NOT advocate for blanket forgiveness.