The topic of student debt forgiveness or student loan cancellation, draws opinion from economists, social activists, legislators, AND everyone on the internet! The opinion varies depending on if you think of education as an INVESTMENT or PUBLIC GOOD! The video also discusses the rising tuition costs, government's involvement in the student loan programs, universities offering programs and how some majors have no value in the job market and possible solutions to fix the student debt crisis.   

College students are generally in an age group where they are particularly not accomplished to make the best decisions in life and may have never had financial responsibilities. So, first things first, how do we explain, to mostly 18 to 22 olds students, who can’t decide what to have for dinner, the possible financial risks of taking a debt? Because, before ‘Student DEBT’ is anything, it is a DEBT!  

Societal pressure to get a college degree is greater than ever. Generations have been taught that higher education is a stepping stone and a ticket to future financial independence. BUT, is it the ONLY way?  Believe it or not, ignorance of basic economics is the biggest reason for people demanding loan forgiveness. Because most students simply don’t understand that government has no money of their own. So let’s put it simply. Government is the handler of the money, that comes from the taxpayers. When a government prints money, it is borrowed money. And if the loan is forgiven, someone would still pay for it, which happens to be the taxpayers.   

You can check more about governments printing money here: https://youtu.be/44nmnsJVfPY 

We sympathize with students who have been in a situation where it has become difficult to pay off their loans. We think education is vital and we are not against it in any way. But we do believe that students should be made conscious to see the loans from an economic point of view, so they could make better financial decisions.  

The video presents the opinions of both the proponents and the opponents of student loan cancellation.   

You can also check other topics on economy on our channel: https://youtube.com/playlist?list=PL64ewlzSRkI-oJ5ekMCTtLy0PJ4xxPAzwEconomy of countries: https://youtube.com/playlist?list=PL64ewlzSRkI8j_Be--1Htkaae5l9iUzYD #StudentLoans #StudentDebtCrisis #college