So help me God I hope writing off student loans is ‘only a matter of time’

In the last few days, a report released by the Government Accountability Office back in February has come into the public spotlight, surfaced in an op-ed in the Wall Street Journal.

The report claims that the Obama administration has only made the world of student loans worse for students. According to the report, only 37 percent of those who took out a government loan are still paying them back. This equates to one of every six borrowers not doing their part.

When borrowers don’t pay or pay less than they agreed too, their balance grows. And now thanks to these programs, over 20 million borrowers can do nothing but sit back and watch their student loan balance grow. In fact, according to the Federal Reserve Bank of New York the average loan balance has had an influx of $10,000. Jumping from $15,000 in 2004 and to almost $25,000 in 2014. And it only continues to increase.

Now if you were waiting to hear what the title of this article is about, here is your chance. In 2007, Congress passed a program called Public Service Loan Forgiveness which essentially says that you can work for a non-profit or a government agency and in about 10 years, your student loan will be forgiven.

I’m sorry what?

If I work for a company on a list that the government created, I will be completely be expunged of my previous school loans? Up to what amount? Does everyone qualify?  The program is set to begin next year in 2017 but there are currently absolutely no requirements as to who can and can not work off their loans. So essentially a doctor, lawyer, writer, veterinarian, or anyone in-between can have their loans forgiven.

I hope this program works, but I’m worried about the toll it might take on our nation’s economy. I fear not enough borrowers are going to partake and the loans still will not get paid back. I appreciate congress has realized there is a problem within student loan repayment but I’m not sure this is the right way. Think of it this way – if you borrow $20 from your friend and never pay it back, they are still out $20 even if they said “oh don’t worry about it”. This is essentially what this program is saying for those who choose to not pay back their loans or work.

On the other hand, who wouldn’t want to the chance to have their loans forgiven? I would love if they would just vanish into thin air but unfortunately that’s just not how things work. The burden that student loans place on people ages 18-25 is intense to say the least. Recent college graduates are leaning more and more towards going home and living with their parents in order to help with their expenses. Unless you land a very well-paying job straight out of college, it is very difficult to pay for rent, bills and a fraction of your student loans every month.