Money doesn’t come easy, at least not for me. Debt? That’s easy.
Comedian Jeff Foxworthy had a popular bit a few years back about debt. He said, in his younger years, he explained to a bill collector that he didn’t have any money. The bill collector said he wasn’t leaving without a check. Foxworthy replied, “A check? Oh, that’s fine. I thought you wanted money.”
That seems to be the mindset of some folks today, especially when it comes to student debt. The proposed idea of forgiving the money so many young people borrowed seems irresponsible — to both the students with the debt and to us taxpayers who, in one way or another, will have to pay it back for them.
Would I have wanted my student debt forgiven as a 21-year-old? Sure, but that wasn’t even a consideration. I paid $113 per month for 10 years to the Iowa Student Loan Liquidity Corporation, and I felt fortunate to have such a low-interest loan for the $11,500 I borrowed.
I worked, wrestled and took classes, and I graduated in four years without summer classes. It wasn’t easy — and that plan isn’t for everyone — but I was glad it worked out for me. Forgiving those loans would have sent the wrong message to a 21-year-old me. It was my debt. I owed it. I needed to pay it back. That message doesn’t seem to be pounded home enough today.
Jolene and I wanted our children to learn the value of money and the seriousness of debt, too. As such, they each paid for a chunk of their college education, and they worked while taking classes, too. We firmly believe this financial lesson will pay off for them. Time will tell.
Meanwhile, I fail to see any positive lesson that would be learned by forgiving student loans, and I fear that it would only encourage young borrowers to seek even more money with assumptions that future loans will be forgiven someday, too.
The adjusting of the terms, or even the interest rate, may be necessary to accommodate a select few who are dealing with unforeseen medical expenses or other major issues outside of their control. That is understandable. Forgiving debt for those who can somehow still find money to pay for flat-screen TVs, video games and beer is not.
The real lesson in all this student loan stuff is quite simple: learn to be responsible by paying off your own debt.
Have a thought-provoking Tuesday, and thanks for reading.
Shane Goodman President and Publisher Big Green Umbrella Media shane@dmcityview.com 515-953-4822, ext. 305 |