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1 Kevin Doshi Professor Wojtkiewicz Philosophy 1700 November 28th, 2020 Student Loan Forgiveness Education is a fundamental aspect that was embraced during ancient times, and it is still embraced today by many people. This process can be enhanced through various ways depending on whether it is formal or non-formal education. Formal education is the most common one that is promoted in learning institutions such as colleges, and schools. As much as education is important, some amount of money is required to enhance the educational process. Due to the amount of money that can sometimes be high for some people because not all the people have a stable source of income, it can make some students prefer not to undergo the educational process in schools or colleges. Based on this, some governments of countries around the world offer loans to the students who are not able to afford fees, then they pay later on when they are employed. However, the issue of payment of loan students is a concern that has been raised by many. Some people feel that it is the right of students to have education without payment, therefore student loan forgiveness should be granted to students who took a loan and are not able to pay. From a philosophical point of view, student loan forgiveness is supposed to create happiness and benefits for the greater good as reflected in the utilitarianism concept. However, this idea is opposed by some people because they believe that it may not be morally correct if other students have been paying the loan and the new policy encourages students not to pay their loans. The Student Loan Forgiveness has its positive impacts, however there are also negative

2 views of this aspect, underpinned by a philosophical view.

First, student loan forgiveness is a heavyweight that when granted to students relieves them from the financial burden. Politicians such as Bernie Sanders and Elizabeth Warren argue that the student loan that students’ are required to pay should be forgiven. In this case, student loan forgiveness programs have been initiated to enhance free students from debt. For instance, Elizabeth Warren intends to forgive the student loan debt for 95% of students in America. Also, Bernie Sanders proposed to cancel both the private student loans and federal loans amounting to $1.6 trillion. Further, senate Democrats suggested initiating a student loan forgiveness program that would grant loan forgiveness of approximately $10,000 of federal students’ loans for all students who took the loan. Similarly, the House Democrats proposed student forgiveness for student debt amounting to $30000 (Fremson, 2020). The former vice president and the current President of the United States, Joe Biden also proposed forgiving student debt for $10,000 (Fremson, 2020). The student loan debt was extended to forgive all federal student loan debt that was used in tuition fees for public colleges and universities. In this case, the total amount of President Joe Biden’s proposed student loan debt program is $750 billion.

Student loan forgiveness can be considered a moral act according to the utility principle. Mill (2009) notes that utilitarianism theory argues that an action is considered moral if it enhances the happiness and pleasure of people. This means that a behavior is determined to be right if it results in the pleasure and happiness of someone. Also, this action is considered wrong if it causes harm, discomfort, unhappiness, or pain to someone. Based on this, many students who go to colleges and universities are from low and middle-income households. Meaning that

3 they may not have enough money to raise their tuition fees, hence they take student loans to help them have enough money for the fees and the necessary educational materials that they may require for school. After college or universities, these students are required to pay the student loan, which seems to be a burden to them. This is because such students from low-income families or middle-income families may not be employed or find better jobs to do. For those who may be lucky to find jobs, they may have other important priorities that they may consider first before paying the loan. For example, the low-income and middle-class student may have a sick patient who needs care and needs. In such a case, the student will be required to pay for medical bills instead of the student loan.

Student loan debt being forgiven, in this case, will enhance happiness for the low and middle-income earners students who may have other responsibilities other than only paying the student loan. In this case, based on the utilitarianism principle of upholding happiness and pleasure to a person, forgiving the student debt for the students can result in their happiness and pleasure because they would have been released from a large burden. Further, the utility principle states that an action is moral if it reduces unhappiness and pain. For many students who took the loan and come from middle or poor families, Student loan forgiveness will help these students because it will reduce the rate of their unhappiness and pain due to the accumulated amount of loan that they need to pay.

The concept of utilitarianism is built by James Mill and Bentham. The idea of happiness and pleasure used to evaluate moral behavior is the argument of both philosophers. They both allow that the pleasures and pains of other people can move a person. However, Bentham further

4 views the idea of happiness and pleasure from a different angle. He mentions that the pleasures and pains of others can only be reflected to be carried by others if these pleasures guarantee the pleasures of others. On this note, Bentham adds a new point of view of the utilitarianism theory, which underpins psychological egoism (Mill, 2009). This means people should only consider their own happiness or desires. The happiness of oneself, according to Bentham’s psychological egoism is all that matters.

According to this, the students with the student loan should be granted permission not to pay the loan to fulfill their own happiness rather than for others. Those criticizing student loan forgiveness argue that student loan forgiveness causes moral hazard because it would be unfair for the students who had paid before. As such, they believe that those who had paid would be more satisfied if those with the debts repay the loan to be on the same level. However, psychological egoism, in this case, supports that the students with debt should not consider the happiness of other people, but instead they should consider if their own happiness is promoted and their pain limited. On this note, students with the debts should only be concerned about their own happiness, they should not be worried about the happiness of the other people who believe that students with the loans repaying will determine the happiness of other students who had paid or those students waiting for that loan.

Student loan forgiveness programs are relevant, particularly during the Covid-19 pandemic. The pandemic has affected various sectors across the world, including the education sector. Most of the people have been affected economically. As such, the financial status of many people is not stable to pay the student loan. In this light, the legislation acted morally and right

5 when it allowed student loan borrowers not to pay for the loan for 6 months (Fremson, 2020). Instead, the student borrowers were basically granted credit towards the cancellation of those loans. The CARES Act was helpful as it relieved the student borrowers off the loans by suspending the loans for some borrowers, as well as canceling the debt for some. As such, because student borrowers were many and the Covid-19 pandemic negatively influenced many people, canceling the student loan portrays the act of utilitarianism. This is because student loan forgiveness has generated the happiness of many student borrowers who had the loans, applying the principle of utilitarianism of the greater good and happiness of many people being considered.

Student loan forgiveness is beneficial majorly to the wealthy borrowers more than the student borrowers from the low and middle-income household. The wealthy borrowers are better off in terms of repaying the loan because they can easily afford the loan. As such, this can pose as an unequal quality that does not intend to promote the good and happiness of many loan borrowers. Comparing the wealthy borrowers and the poor borrowers creates a big gap that can make low-income borrowers be frustrated due to the loan. On this note, student loan forgiveness is fundamental, particularly for the sake of the poor student borrowers. The government implementing student loan forgiveness will make them feel relieved, hence creating their happiness and pleasure as mentioned in the utilitarian theory.

In spite of students’ loan forgiveness being relevant to most of the low-income borrowers who may not be able to repay the student loan, it is also important to note that student loan forgiveness results in a negative impact on society. First, student debt leads to a poor economy

6 that holds many people. Lieber & Bernard (2020) note that in the United States, approximately $1.6 trillion shows up the student debt that has not been paid. This has a negative impact on the economy of America because it creates a large overhanging on the economy of the country. Student debt is so far the biggest source of debt in the United States followed by mortgage loans. On this note, allowing student loan forgiveness will only lead to the economic problem of the country. Promoting student loan forgiveness is a way that would be ineffective in terms of enhancing the economy of the United States. The repaid student loans increase the cash flow of the economy by $90 billion per year (Gay, 2020), as much as it would create another $1.7 trillion amount of money in the economy. The increase in the cash flow of the economy means that the economy will be able to support its people in the United State.

Student loan forgiveness does not consider the morality of the society as reflected in the Utilitarian concept. The first utilitarian concept by John Stuart Mill argued that morality is defined by the utilization of happiness and pleasure for the sake of the greater good. Utilitarianism advocates for the happiness of many people because morality is measured through the many people who are satisfied and are happy. This concept is slightly different from the argument of Bentham, where he mentions that happiness in oneself in the psychological egoism of utilitarianism is what is more important.

Student loan forgiveness will lead to less cash flow of money in an economy that can affect many people in the economy. For this reason, student loan forgiveness is morally unacceptable. This is because the happiness of many people would not be granted. If the economy of a country is affected, the major economic activities of the country are influenced as

7 well. As a result, the poor economy of the country would be reflected in the living standards of people. For instance, there would be unemployment because the government does not have enough money to pay the workers, particularly those in government institutes, poor infrastructures, and other activities that can affect many people in the country. On this note, implementing student loan forgiveness programs can introduce other challenges that affect a large number of people, hence violating the concept of utilitarianism.

In conclusion, student loan forgiveness is a program that can help majorly low-income borrowers to be relieved of the burden of paying the loan. Many programs have been implemented in the United States to cancel student debt. Cancellation of the debts can be a positive claim right, however, it will not enhance the happiness and pleasure of many people as reflected in utilitarianism. Utilitarianism advocates for the happiness and pleasure of the greater good. This means that many people are more important than a single person according to the theory. As such, not canceling student debts will help more people than the government providing student loan forgiveness.

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References Fremson, R. (2020, November 17). Biden was asked about canceling student loan debt. Progressives saw an opening. The New York Times. https://www.nytimes.com/2020/11/17/us/biden-was-asked-about-canceling-student-loandebt-progressives-saw-an-opening.html Gay, R. (2020, November 26). What to Do About Student Loan Debt? The New York Times. https://www.nytimes.com/2020/11/26/opinion/letters/student-loan-debt.html Lieber, R., & Bernard, T. S. (2020, November 8). For Millions Deep in Student Loan Debt, Bankruptcy Is No Easy. The New York Times. https://www.nytimes.com/2020/11/07/your-money/student-loans-bankruptcy.html Mill, S. J. (2009). Utilitarianism. Auckland: Floating Press. The Accessed August 7, 2020. ProQuest E-book Central...