WTH 🤷🏼‍♀️ College Debt

The conversation around student loan forgiveness often ignites passionate debate, especially from those who say, “Why should taxpayers bail out college debt?” But to understand this issue more deeply, we must take a hard look at what college debt really is—and what, exactly, we’re bailing out. Spoiler alert It’s not a bunch of wealthy students living large on taxpayers’ dime. In fact, the people holding this debt often owned no car, no home, had no savings, and took on student loans simply to try to get ahead.

Breakdown 

When people criticize student loan forgiveness, they often paint a picture of privileged young adults who spent lavishly and are now dodging their responsibilities. The reality, however, is starkly different:

— Many borrowers came from low-income households, were the first in their family to attend college, and saw education as a way out of generational poverty.

— They didn’t own homes, didn’t drive new cars, and often lived paycheck to paycheck while in school and after.

— They took out loans not for luxury, but for survival: tuition, books, housing, food, and sometimes to care for family members while studying.

When we talk about “bailing out” student debt, we’re talking about helping people who had no financial cushion—who took on risk in pursuit of a better life.

It’s the Interest That’s Crushing People

What’s really broken about student loans isn’t necessarily the fact that people borrowed money. It’s how the system traps borrowers with compounding interest, especially those who had to defer payments due to low income or financial hardship.

Example

— A $20,000 student loan can balloon to $50,000 or more over time.

— If you defer payments while unemployed or working low-wage jobs, interest keeps piling up.

— Many borrowers have paid more than the original loan in interest and still owe more than they started with.

This is not responsible lending. This is legalized predatory lending, sanctioned by the government.

It’s a fair question. But we must also look at how bailouts have historically worked in this country.

 — In 2008, Wall Street was bailed out to the tune of hundreds of billions of dollars, even though many executives owned multiple homes, yachts, and private jets. Taxpayers footed the bill.

— In the pandemic, businesses received PPP loans, many of which were forgiven—while some of these same businesses posted record profits.

— In contrast, the average student loan borrower owes $28,000–$40,000, and has no wealth to fall back on.

If we bailed out the rich during their crisis, why are we unwilling to bail out everyday people whose only mistake was believing in the American Dream?

— People delay buying homes, cars, starting families, or investing in small businesses.

— Entire generations are burdened with debt before they’ve had a chance to build wealth.

— Student debt disproportionately affects Black and brown communities, widening the racial wealth gap.

Forgiving student loan interest—or even forgiving loans altogether—is not just charity. It’s an investment in a healthier, more productive society.

What Could We Do Instead?

Cap or eliminate interest on student loans.

Allow refinancing at 0–2% interest, just like mortgages or small business loans.

Forgive loans after 10 years of public service, not 20–30.

Make public college tuition-free or affordable, so we don’t repeat the cycle.

Give people an opportunity and let’s acknowledging that the system is flawed, interest rates were predatory, and the promise of education turned into a trap for millions.

If we can bail out banks, car companies, and corporations who made bad bets, we can certainly give a break to everyday people who tried to do the right thing.

This isn’t about left or right. It’s about fairness. And about giving people a fighting chance to live the life they were told was possible if they got an education.