The student loan forgiveness plans proposed by Warren and Sanders are very similar to Solon’s discharge of all debts. “Solon, it appears, became a pioneer of this device, when he referred to his cancelling of all debts as a discharge” (Plutarch). They are similar in the way that the legislation would be discharging student loan debts to “Sallie Mae” who mails a bill monthly requesting to be paid. These loans in most cases are paid over the course of up to thirty years and some people are dying in debt because they can’t pay off the student loans.
College is too expensive for most, which is why they needed the loans to go to school initially. A study produced by Fox Business says that 51% of students that are enrolled, drop out due to the tuition burden. The relief plan would in fact leave many institutions and creditors in a hole because of how much they’d never be repaid. There’s 45 million student loan debtors to an accumulative 1.5 trillion dollars of debt.
Bernie’s relief plan is closer to Solon’s installment than anyone else’s because he is wiping the entire debt, whereas others have stipulations and debt deductions depending on their current income. Another difference between the two would be having a lower interest rate on all existing federal student loans which Solon spent no time on. Solon never discussed interest rates.
I don’t think the student loan relief plan proposed by the candidates would be a burden or hinder any of the beneficiaries. In America, these plans would raise the IQ of the Americans across the board. More middle and low class individuals would take the time to go school if it weren’t so expensive. It gives people hope and opportunity that there is higher education not out of their price range after high school that they can actually invest themselves in. It relieves the stress on parents and kids who never knew how they would pay for school or if it was even feasible.
There should be some sort of contract or stipulations attached to this plan. There’s no benefit in having a situation like Solon’s where the poor were taking loans just because they wouldn’t have to be repaid. A type of contract proposed such as having to finish college and giving back time is reasonable. After spending a certain amount of time in a specific school like the Naval Academy there should be some commitment, it doesn’t allow students to waste too much of tax payers’ money. There’s less incentive to not finish, no one would want to pay back tens of thousands of dollars. At least the education was free or cheaper than it would have been so they might as well take advantage. The only way it’d be hindering anyone here is if the tax payer money was being wasted. Ex. Students in mass numbers only completing a couple semesters and never finishing school. That money could have gone to students who actually plan to finish and the money would have been spent more efficiently.
“Plutarch Life of Solon” 2- Solon