Annotated Academic Writing

         

Surname          7

Author
Institution
Course
Due Date

The Student Debt Forgiveness Debate

         The student loan crisis in the United States is now a looming political and economic controversy, with policymakers grappling over ways to fix over $1.7 trillion in unpaid student loans. Now, as the Biden administration continues to push proposals on forgiving student debt, it is becoming an even hotter topic. Some see it as a way to take the burden off borrowers, while others critically note that there is a problem of legality with possible fallout. The annotated bibliography provides three sources showcasing different views on how complex the issue of forgiving student debt is. These sources include the following: empirical research into the impacts of debt relief, analysis on the legal and political challenges to it, and the ideological argument against widescale loan forgiveness. Deflection of this information will go a long way in making relevant decisions and informing the public on issues regarding a very debatable subject.

Annotated Bibliography

          Gerdeman, Dina. "Forgiving Student Loan Debt Leads to Better Jobs, Stronger Consumers." HBS Working Knowledge, 22 May 2019, https://hbswk.hbs.edu/item/forgiving-student-loan-debt-leads-to-better-jobs-stro...
         The article by Gerdeman relays the results of a research study led by Marco Di Maggio, an associate professor at the Harvard Business School, and his colleagues. Using student loan debt forgiveness, the research study estimated that people have higher propensities to take higher wage jobs, spend more, and manage finances better, hence contributing to a strong economy. This article emphasizes the huge burden of student debt as a hindrance to principal life decisions that people make and in the pursuit of better opportunities. One can draw an inference from it that forgiveness of student debt could have wider economic benefits since people are in a better position to contribute financially towards the economy. The results are relevant for policymakers contemplating student debt relief policies and their consequences at the micro and macro levels.
          Jabbari, Jason, et al. "Student Debt Forgiveness and Economic Stability, Social Mobility, and Quality-of-Life Decisions: Results from a Survey Experiment." Socius, vol. 9, SAGE Publishing, Jan. 2023, https://doi.org/10.1177/23780231231196778.
         In this research, Jabbari et al. examine the relationship between student debt forgiveness and a range of household behaviors and decisions. The authors carry out a survey experiment conducted on 1,053 individuals with student debt, in which they were randomly given different levels of hypothetical debt forgiveness. Their findings point out significant effects on economic stability, social mobility, and quality of life, with the magnitude of change based on more massive forgiveness amounts. In particular, these relationships were moderated by the amount of student debt and household income level, showing that those with large debts and high incomes would benefit most from larger forgiveness amounts. According to these findings, individuals can make some important conclusions in relation to the consideration of policies regarding the forgiveness of student debts at the level of policymakers, which may affect the interests of individuals and households.
          Leef, George. "Against the Latest Student-Loan 'Forgiveness' Scheme." The James G. Martin Center for Academic Renewal, 16 May 2024, www.jamesgmartin.center/2024/05/against-the-latest-student-loan-forgiveness-scheme/.
         This article by Leef from the James G. Martin Center for Academic Renewal is a rather critical approach toward the latest Biden's plan to forgive student loans. Leef argues that these proposed rules are ultra vires to the Department of Education and have bad consequences. He avers that the rules are an unconstitutional overreach on the part of the executive since Congress alone can forgive debt owed to the government. Leef also complains about the substance of the proposals, which he says would make unjustified gifts to successful borrowers, thus reducing incentives for cost consciousness among both students and institutions. The article is a powerful ideological counterpoint to the administration's loan forgiveness efforts by mentioning concerns of fairness, governmental overreach, and potential unintended consequences of such policies.


          Meyer, Katharine. "The Long Path Forward for Student Loan Forgiveness." Brookings, 28 July 2023, www.brookings.edu/articles/the-long-path-forward-for-student-loan-forgiveness/.
         This article by Meyer from the Brookings Institution provides an overview of the current status and outlook for student loan forgiveness policies in the United States. When the Supreme Court invalidated a proposal by President Biden's administration to forgive up to $10,000 of federal student loan debt, the administration began to turn its focus toward revamping the lending and repayment processes. That is with targeted forgiveness programs already in the works, a new income-driven repayment plan on the way, and the so-called negotiated rulemaking process that's underway and could provide an avenue for broader forgiveness. The article examines the impediments and timelines for these efforts and how they may be met with legal challenges. It takes up the complicated nature and political dynamics of student loan forgiveness, offering insights for policymakers and the public on the long-term path forward.

Conclusion

         Ultimately, the United States faces a complex situation in regard to the student debt crisis, and there is no easy way out of it. The sources in this annotated bibliography underscore the complexity of these trade-offs connected with the proposals for student debt forgiveness. While some research did find potential benefits with improved economic and social outcomes for borrowers, others raise valid concerns about legality, fairness, and unintended consequences of such policies. Subsequently, there are intricate concerns to be met on every side. Solving the student debt burden will always mean looking through the matrix of needs between borrowers, taxpayers, and the overall economy.

Works Cited

          Gerdeman, Dina. "Forgiving Student Loan Debt Leads to Better Jobs, Stronger Consumers." HBS Working Knowledge, 22 May 2019, https://hbswk.hbs.edu/item/forgiving-student-loan-debt-leads-to-better-jobs-stro...
          Jabbari, Jason, et al. "Student Debt Forgiveness and Economic Stability, Social Mobility, and Quality-of-Life Decisions: Results from a Survey Experiment." Socius, vol. 9, SAGE Publishing, Jan. 2023, https://doi.org/10.1177/23780231231196778.
          Leef, George. "Against the Latest Student-Loan 'Forgiveness' Scheme." The James G. Martin Center for Academic Renewal, 16 May 2024, www.jamesgmartin.center/2024/05/against-the-latest-student-loan-forgiveness-scheme/.
          Meyer, Katharine. "The Long Path Forward for Student Loan Forgiveness." Brookings, 28 July 2023, www.brookings.edu/articles/the-long-path-forward-for-student-loan-forgiveness/.