A Loan Taken Out Is a Loan That Must Be Repaid
To many, graduating from high school is a momentous occasion. Students study hard, put in work, and grow during their high school years. However, one thing that perhaps is not factored into the equation enough is financial literacy.
America has an educational system unlike any in the world.
If students do not score at the top of the class in the United States, they still have options. Americans can go to a community college, go to work, go to a four-year institution, change a degree pathway, or enlist in the military.
But, if we continue to promote the high school-to-college pipeline and trivialize trade schools or other paths, then we are ultimately stifling our educational freedom and glorifying debt.
The debt many students incur, based on the student loans they take out to go to college or to stay in school, is troubling.
If we fail to have a more transparent process for diverse paths after graduation, we will not only do a disservice to our nation’s teens, but also to our entire educational system.
In Iowa, we know that a loan taken out is a loan that must be repaid. This is why I introduced the “Know Before You Owe Federal Student Loan Act of 2023,” which expands lender disclosure requirements and revises loan counseling requirements.
But the Democrats and the Biden Administration continue to push blanket student loan
forgiveness, which results in those "forgiven" costs being transferred to hardworking taxpayers.
The Biden Administration's plan to complete a sweeping student loan forgiveness plan asks someone who may or may not have gone to college to pay back a loan from which they are not benefitting. It's asking a student who decided to go to a community college before a four-year college to work a double shift. It's asking a parent who may be delaying repairing their car because they are helping their child pay for school to foot the bill.
Despite efforts by President Biden and Democrats to “forgive” student loans, we must remember that student loans are still a major financial commitment and should be treated as such. Before taking out federal student loans, proper counseling for students should be required.
We must ensure our students are equipped with the guidance needed to make informed decisions and that they understand the process to pay these loans back. I hope my colleagues will join me to turn the tide and increase knowledge about student loan options.
|