Debate: Forgive Student Debt?

Four scholars debate about student loans in America.

Resolution: Should America forgive student debt?

Arguing “YES” is Ashley Harrington, a Federal Advocacy Direction and Senior Counsel member at the Center for Responsible Lending.

Her partner is Dalíe Jiménez, a Professor at the University of California Irvine School of Law, and Director of the Student Loan Law Initiative.

Arguing “NO” is Beth Akers, author, co-author, a Resident Scholar at the America Enterprise Institute, and former economist advisor under President George Bush.

Her partner is Nick Gillespie, Editor-at-Large of Reason, and co-author.

Harrington started the debate and said that there are currently $1.7 trillion of debt among 44 million adults. Although some people say its good debt, its not for many people.

Student debt affects African American borrowers more than other borrowers. Due to this, they are more likely to borrow money, and will struggle more to pay it off.

“That is the direct result of centuries of racially exclusionary policies and practices that continue to this day,” she said.

During the Great Recession, the African American population lost trillions of dollars. They still have not recovered that recession, and the pandemic has made it worse. However, by cancelling student debt, it can help relieve stress on them.

Gillepsie opened up the debate by talking about the people who have debt. For the most part, the average student debt is around $28,000. Over a ten year period, that will be $275 per month.

It is smart to take out money for student loans because the borrower will be making a lot more money when they graduate from college.

“Annually, a college graduate makes about $17,000 more per year than a high school graduate,” he said.

By cancelling debt, this will allow graduates who make $100,000+ per year to not pay off their debt. The question should be about how to make college more affordable.

Jiménez said that student debt helps many, but it does not help African America students. She said that on average, African American families earn 80% less than white families with the same education.

It is very risky to force African American people to take out debt.

“We need to forgive student debt, and we need to stop using student debt as the only way that poor people can get ahead in this country,” she said.

Student debt is continuously rising and continuously impacting African American people at a disproportional rate.

Akers ended the debate by saying that there is a need for a more nuanced solution. She said that people with student debt do not all fall under the same poor, economic group.

She said that children from higher income families tend to take on more student debt. This is because they tend to go to school longer, and go to more expensive schools.

“More than half of the outstanding student loan balance in the economy today is held by people who are in the top 40% of the income distribution,” she said.

Forgiving student debt would help lower income people, but it would also provide more help for people in the higher income level.

Before the debate, 52% of people were against the motion, 30% were for the motion, and 18% were undecided. After the debate, 73% were against the motion, 24% were for the motion, and 3% were undecided.

Gillespie and Akers, the side against the motion, won the debate.