Overheard In The Wine Aisle

I recently overheard someone in the grocery store complaining that the student loan forgiveness bill had been deemed unconstitutional. As they loaded up their basket with wine and fancy cheese, they whined that they had charged $20,000 worth of goods and services to their credit card in anticipation of the receiving the funds. They “needed” that trip to Greece and the new Yves Saint Laurent handbag, after all, but now they can’t afford to pay off the debt.

Let me back up. They had at least $20,000 in student debt. Had the debt been wiped, they planned to reacquire debt in an equal amount, likely with a higher interest rate, for nonessential luxuries. Rather than waiting for the funds to land, they went ahead with the purchases preemptively. What?!

Instead of gaining some relief, they have dug themselves into a deeper hole. They spent $20,000 they did not have, and will never see. And I suspect this well-dressed stranger is not alone.

Some people aren’t so bright. I can’t blame them, as we often don’t know what we don’t know. But we can’t be enabling this behavior on a national level. To anyone who’s familiar with the the system of American government, the student loan forgiveness was clearly unconstitutional from the start. On top of that, everyone should know well enough not to spend money they don’t have. A bird in the hand is worth two in the bush, after all. And yet, common sense isn’t so common.

Several years ago, I discussed why I am against student loan forgiveness. It’s not because I wish to punish or torment, but because I understand that we can’t trust most people to be responsible with money. Instead, they want to pass the buck.

The thing is, forgiven student debt does not simply vanish. It gets transferred to the national debt and becomes a liability for taxpayers rather than borrowers. And I don’t feel comfortable paying taxes to cover someone else’s poor decision-making. I am not saying that everyone with student debt lacked good judgement, but rather that some number of those who would benefit from loan forgiveness did and, perhaps, still do. If an individual did not research how student loans work or make the effort to weigh the pros and cons, I cannot feel confident that the newfound riches in their monthly budget will be reallocated prudently.

In a perfect world, those forgiven of their student debts would use the extra several hundred dollars each month to pay off consumer credit cards, build up an emergency savings account, and gain the financial security that was previously out of reach. I worry that those same students that did not qualify for academic scholarship and that took out an extra $50,000 in students loans for a luxury apartment and booze will continue to live on the edge, waiting for the next government handout. I don’t believe those who are facing the consequences of their ignorance and poor decisions deserve to be saved.

Too harsh? Maybe. But I think it’s a fair take, based solely on the interaction I observed.

Just as predicted, the dangling carrot was a tempting tease for countless borrowers. People spent money they did not have. They put the cart before the horse and now they’re in an even worse position than they were before. And it irks me because it has been painfully obvious since the first promise of loan forgiveness that this would be the outcome.

Tuition is too expensive, many loan companies are predatory, and the market is saturated with useless degrees and ill-equipped graduates. I get it. I agree. The system is broken. But, while it may not be our fault, it is our responsibility to navigate within the broken system until it can be fixed.

I was bamboozled into obtaining a worthless degree. I lived off rice and beans for several years to aggressively pay off my student loans. I worked low-wage jobs and lived with roommates for many years post-graduation before hitting my stride. I struggled like so many others, and I came out the other side debt-free. Meanwhile, many peers traveled abroad, ate out daily, and rented luxury apartment with modern furniture.

Their perspective: YOLO! I have a prestigious college degree and deserve to live like a cultured adult.

My perspective: Oof! I have debt and had to live like a pauper until my debt obligations had been fulfilled.

Now those same individuals are upset that I’m not obligated to subsidize their lavish choices. And they are choices. Tropical vacations and designer handbags are not necessities. I’ve gone thirty-four years without either, and I’m just fine.

What’s my point? I’m not even sure. Do I have a solution? Nope. I am just sick of the whole student loan forgiveness debacle. I have always lived under the assumption that nobody is going to give me something for nothing and the government isn’t going to fix any of my problems. I wish others would do the same, and learn to take responsibility for their actions. It would make life better for all of us.