The Government Should Cover Student Loan Debt

Your Name Subject and Section Professor’s Name December 9, 2024 Why the Government Should Cover Student Debts: An Argumentative Paper Introduction Student debt in the United States today is becoming a problem as the 43 million people combined owe about $1.75 trillion in educational loans. These debts enormously burden our lives, the economy, and society. On one side, the opponents stated that borrowers should take full responsibility for their debts. In contrast, on the other side, voices are being heard, calling for government intervention in assuming this burden. Therefore, this paper will substantiate the assertion that the government should pay for student debts in order to spur economic growth and reduce poverty and racism. An argument based on feared economic accountability and equity losses is also considered. Economic Benefits of Student Debt Relief Even though student debt relief benefits student borrowers alone, it also has a balanced financial impact on the nation. Many borrowers spend a large part of their income to service their student loans, leaving them with little money for food, shelter, medical care, and the like. First, debt forgiveness would relieve this financial burden and put billions of dollars toward consumer spending, a key element of an economic recovery. According to Woodfin et al., when borrowers are no longer trapped by debt, they can plan for future requirements like buying homes, starting their business, and saving for retirement. For example, the authors explain that the erasure of $1.3bn in debt for four cities alone would allow residents to invest in local economies and restore neighborhoods. In addition, student debt can affect career choices and the workforce among students. According to Dynarski, student loan debt has the effect of locking the graduate out of entrepreneurship or more socially productive albeit less remunerative fields such as teaching, public health, or social service. When these debts are cleared, the graduates are better positioned to make the right decisions when choosing their careers. This is in contrast to when they have to make choices based on how they will pay off their bills. Debt alleviation also improves the patient's mental well-being since lesser financial concern is equivalent to better employee performance at work. That way, the government can build a stable, productive workforce that will translate to steady economic developm...