Student loan debt not the government’s fault

By Sam Adolphsen, Special to the BDN
Posted May 01, 2012, at 4:34 p.m.

I still remember the day.

I was sitting at my kitchen table, pen in hand, and I signed the dotted line to borrow a significant amount of money to pay for my first year of college.

The funny thing was — despite what you might hear in the media these days — no one was standing over my shoulder forcing me to. No government official told me I had to borrow the money. It was my decision then, and it’s my debt today. I weighed the price of borrowing against the value of a secondary degree, and I chose education.

My decision, my responsibility.

That’s not what you are hearing today from most of America’s youth. There are rallies in the streets of Portland, as well as in cities across America, with Occupy-inspired students and graduates whining about their debt and how they need a way out. Students who have borrowed too much — of their own free will, for degrees that haven’t led to a job — are now demanding a handout.

My generation is looking for a bailout. It doesn’t matter that many of them are in tough positions, loaded with debt, because they made poor choices. It doesn’t matter that borrowing money is a personal decision and requires personal responsibility. They want the easy way out.

The Portland Press Herald ran a story a couple days ago highlighting several students who carried student loan debt. One of the students was a social worker who owes $97,000 in student loan debt. A cursory search of the Internet will tell you that social workers don’t earn enough to warrant that kind of debt. The same goes for a Maine student who will owe more than $27,000 for his degree in philosophy.

I know that Walt Disney told my generation we can “be whatever we want to be” if only we “believe in ourselves.”

But borrowing $27,000 for a career in philosophy? In Maine? That’s a questionable decision at best, and it’s not the government’s fault.

The government already stepped in quietly and took over the student loan industry as part of Obamacare, and they have already used taxpayer money to lower interest rates on current government student loans to 3.4 percent. Now those taxpayer-subsidized interest rates are set to expire and more than double, and the “gimme-gimme” nation doesn’t like it.

Naturally, those who want government to take care of them are calling for the interest rates to be held at 3.4 percent, with the taxpayers chipping in for the difference. But make no mistake, even if those rates are held, this won’t be the end of the discussion. Now that the government holds all student loans, they have the opportunity to “bail out students” by forgiving loans.

Occupy camps in a park near you are already chanting to the beat of the “forgive all student loans” drum, and you can expect that cry to get louder this summer — it’s warm now, so they can start occupying again.

Don’t get me wrong: I agree that college costs are too high. And that is partly the government’s fault. Consider the University of Maine, piling on raises for its teachers while simultaneously jacking up rates for students. In just a few years, university salaries were up 29 percent overall while at the same time tuition costs jumped 30 percent. That’s unacceptable, and it’s a problem that needs to be addressed.

It’s also the government’s fault that anybody considers a bailout a legitimate solution to our problems. The bank bailouts and Obama’s boondoggle “American Recovery and Reinvestment Act” set the precedent and taught my generation that poor decisions and failure can be fixed with a government check. Shame on them for that, and shame on us for looking to government to bail out students now.

Ultimately, students and their parents make the decision to borrow money for school. And it’s their responsibility to pay it back. I’m tired of the whining, I’m tired of the blame game and I’m tired of people relying on government to bail them out.

It’s your debt. Pay it yourself.

Sam Adolphsen runs the Center for Open Government at the Maine Heritage Policy Center.

http://bangordailynews.com/2012/05/01/opinion/student-loan-debt-not-the-governments-fault/ printed on November 26, 2014