Student loan relief could change lives

So about those student loans. I have seen and heard a lot of varying opinions about the recent decision to grant loan forgiveness to those with outstanding student loan debt. Some are major proponents of the decision, while others are greatly angered.

I have seen comments ranging from, “I sure wish someone would pay my bills,” to “this blessing would change my life” to “I am so glad I get to pay for this too.”

I attended college with the help of student loans and I am one of the millions of Americans now strapped with crippling student loan debt.

My loans have been bought and sold numerous times by various lenders and with each new statement, the balance grows as it continually accrues interest. This is a debt I feel I will never escape.

This debt has prevented me from having the opportunity to buy a home or continue my education. It has negatively affected not only my life but that of my children as well.

I hope those in opposition to this modest debt relief will take the time to consider the bigger picture.

Interest rates are at the heart of this crisis and should have been restructured long ago. It is my opinion that there should be no interest on student loans, they could solve this by tacking on a one-time, non-compounding borrower’s fee.

Many Americans currently paying on student loans are only able to cover the interest, therefore the principal amount of the loan continues to grow. I would compare this scenario to sitting in a boat full of holes bailing out water with a cup to stay afloat.

The outrage over the debt relief seems somewhat misplaced to me.

Americans in 2018, according to CNBC, paid an average tax rate of 13.3% on their income, while the wealthiest 400 families in America paid an average of 8.2%.

In my research, I also stumbled across a website that tracks the monetary totals of government bailouts, www.projects.propublica.org/.

According to the site, Fannie Mae alone was given almost $120 million of American taxpayer money.

And let us not forget, the American taxpayers bailed out the auto industry to the tune of over $9 billion during the TARP program in 2014.

There is no shortage of struggling Americans in today’s economy, student loan debt is just a very small portion of a much greater issue as most are aware.

The decision to forgive a portion of student debt means that a single mother can finally provide a home for her children, a man can purchase a dependable vehicle to travel to and from work to support his family and for some, it means they can further their education if they have the desire.

The people who will benefit from this will undoubtedly be putting that money back into the economy, not in their pockets for profit like the many banks and financial institutions we were forced to save.

This decision will only remove a small portion of my burden, but I am thankful for it. I am determined to better my position in life, but seeking a college education when I was unable to pay out of pocket has caused me more hardship than it has given me opportunity and I am not alone.

Student loan debt relief stands to change the lives of many who have been burdened with debt they might otherwise never escape. It is positive for millions of Americans despite the opposition it has met.

Misty DeJournett is a staff writer at the Daily American Republic. She can be reached at mdejournett.dar@gmail.com.