Mentor/s
Jennifer Trudeau-Tham David Thomson
Participation Type
Paper Talk
Abstract
With the cost of attending college dramatically increasing over the past forty years, the same has happened to the national student loan debt causing American citizens to vocalize their concerns. In response, on August 24, 2022, the Biden administration announced its Student Loan Debt Forgiveness Plan. This announcement was met with immediate backlash and praise thus raising the question; should the Student Loan Debt Forgiveness Plan be passed and who should be eligible? To accurately answer this question, there needs to be an understanding of why it is such a big issue. Based on nontraditional borrower delinquency rates, the number of borrowers, and rapid escalation of market value for a degree, the student loan crisis parallels the 2008 housing bubble, which could ultimately lead to another recession. A possible fix to this problem could be Biden's plan. The arguments for and against this plan can be evaluated economically and philosophically. Economic and philosophical arguments that support passing the plan include preventing another bubble, PPP loans, raising the standard of living for low- and middle-class families, act utilitarianism, and deontological ethics. Economic and philosophical arguments that don’t support passing the plan include a rise in inflation, a bailout for borrowers, other possible solutions, rule utilitarianism, and consequentialism. My findings indicate that by limiting the number of eligible borrowers the relief plan can put less pressure on taxpayers and inflation. To summarize, President Bidens student loan debt relief plan should be passed but limiting the number of recipients would be best economically.
College and Major available
Business Economics, Finance BS
Location
Session 13: Digital Commons & Martire 310
Start Day/Time
4-27-2023 2:00 PM
End Day/Time
4-27-2023 3:15 PM
Creative Commons License
This work is licensed under a Creative Commons Attribution-Noncommercial-Share Alike 4.0 License.
Prize Categories
Best Multidisciplinary Research or Collaboration, Most Scholarly Impact or Potential, Best Writing
Why President Bidens Relief Plan Should be Passed but for More Limited Borrowers
Session 13: Digital Commons & Martire 310
With the cost of attending college dramatically increasing over the past forty years, the same has happened to the national student loan debt causing American citizens to vocalize their concerns. In response, on August 24, 2022, the Biden administration announced its Student Loan Debt Forgiveness Plan. This announcement was met with immediate backlash and praise thus raising the question; should the Student Loan Debt Forgiveness Plan be passed and who should be eligible? To accurately answer this question, there needs to be an understanding of why it is such a big issue. Based on nontraditional borrower delinquency rates, the number of borrowers, and rapid escalation of market value for a degree, the student loan crisis parallels the 2008 housing bubble, which could ultimately lead to another recession. A possible fix to this problem could be Biden's plan. The arguments for and against this plan can be evaluated economically and philosophically. Economic and philosophical arguments that support passing the plan include preventing another bubble, PPP loans, raising the standard of living for low- and middle-class families, act utilitarianism, and deontological ethics. Economic and philosophical arguments that don’t support passing the plan include a rise in inflation, a bailout for borrowers, other possible solutions, rule utilitarianism, and consequentialism. My findings indicate that by limiting the number of eligible borrowers the relief plan can put less pressure on taxpayers and inflation. To summarize, President Bidens student loan debt relief plan should be passed but limiting the number of recipients would be best economically.
Students' Information
Nicholas LaBanca, Finance and Business Economics Major, Honors Student, 2023