Student Loan Debt

I thank Evolution078 for the topic. ==Burden of proof== As the instigator, my opponent has the burden to prove why student loan debt is bad. ==Rebuttal== ---Con's "contention"--- My opponent seems to offer a plan here: that all parents be required to donate $24,000 a year to their child's college tuition. There are a couple problems with this: 1. Poor people often live hand-to-mouth and cannot afford to accumulate $96,000 in savings per child. [1] 2. This is still not enough money. Attending Harvard costs $60,000 per year, for example. [2] Even someone's parents who donated $24,000 per year would still need a student loan in the amount of $36,000 per year. ---My opponent says that without money, students are forced to join the military or go to community college--- He purposely ignores student loans here. Student loans are provided at extremely low interest rates and are tax deductible. [3] Student loans are the best possible deal someone could get while borrowing money. ---Con's "arguments"--- 1) My opponent offers a theoretical example of a poor family who makes roughly $25,000 a year. He subtracts the cost of housing and food for a family of two and says this would leave "Jimmy" with roughly $7500 a year to put in the bank for his child's college. My opponent forgets payroll taxes amounting to $1500 a year, cost of transportation amounting to $2500 a year, and cost of clothing amounting to $1250 a year. [4] [5] Assuming his employer provides health insurance, Jimmy will also pay $1500 a year out of pocket for his premiums. [6] Lastly, my opponent forgets to factor in the high cost of raising a small child, which amounts to roughly $3500 a year. [7] After all these costs are factored in, Jimmy is roughly $3,000 in debt per year. Jimmy has zero money left for savings and will actually owe $54,000 in debt by the time his adopted child reaches age 18. Conclusion: Jimmy cannot afford to pay for his child's college tuition. Student loans will be necessary if his adopted child wants to attend college. A) My opponent argues that median incomes are high in California. However, California is one of the wealthiest states in the Union. The poorest states in the Union have median incomes much closer to Jimmy's income. [8] In addition, all my opponent's arguments here assume that he has proven that even a family living on minimum wage can afford college tuition and is just being selfish and buying "cool knick knacks." Jimmy clearly can't afford tuition if you factor in all the costs. Keep in mind, also, that tax rates go up with income, and that food, clothing, and transportation costs are calculated as a percentage of income, so these costs rise as well with income levels, since the cost of living is higher in wealthier places. My opponent has yet to prove that someone with California's median income could afford full tuition payments. 2) My opponent essentially makes the argument that eliminating student loans will boost the economy However, student loans are just like any other type of loan – they allow people to defer immediate payment in order to engage in pursuits that will pay significant dividends further down the road (college, law school, medical school). In this way, loans make the economy more efficient. Imagine what would happen in the business sector if loans to entrepreneurs ceased to exist. No one would start new companies. The same will happen in technical fields if student loans cease to exist; there would be no more lawyers and doctors. 3) My opponent argues that student loans contribute to the national debt. However, the national debt is caused by accumulating federal budget deficits. Congress borrowing money is solely responsible for the national debt. Personal debt does not contribute to this national debt figure. 4) My opponent argues that people can get student loans if the costs are higher than average (his example is doctors) The average cost of tuition for a private 4-year college in the U.S. is $27,000. [9] The average tuition cost for medical school is $25,000. [10] Under his standard, doctors could not get student loans. 5) What my opponent is essentially advocating here (in his #5) is a collapse in consumer spending. A collapse in consumer spending would plunge us even further into recession. According to the San Francisco Chronicle on September 26th, "the collective purchasing behavior of American households may determine whether the nation continues to recover from the worst downturn since the Great Depression or slips back into recession." [11] When people buy clothes and toys, employers can start hiring again. Without consumer purchases, employers will have to continue layoffs. 6) My opponent argues for a regressive system Forcing people to save additional money for college each year, based on a regressive system, would have the same effect as raising taxes. Raising taxes during a recession would have a catastrophic effect on the economy. [12] ==My case== C1) Orphans Orphans have no parents, by definition. They require student loans if they want to go to college. C2) Parental rights The average parent in the U.S. spends a quarter of a million dollars to raise a child to the age of 17. [13] Parents have a right to enjoy their own incomes once their child reaches adulthood. If they get more satisfaction from taking a trip to the Caribbean before they die, parents should have the right to do this instead of being required to spend $100,000 on college tuition. If, however, parents get more satisfaction from helping their child pay for college, they should have the option of paying in full. But it should be the parents' right to make the decision of what to do with their money. Adult children are not entitled to this money as a birthright. This is a slippery slope. If parents must save money for their adult children for college, why not require parents to also set up a fund for their adult children to buy a home? How about a dowry fund for marriage? Why not legislate that parents must buy their children a car? C3) Paying the difference My opponent has not allocated enough money to college students to pay tuition for expensive private 4-year colleges and has not left many college students with enough money for room and board. Student loans would still be required to pay the difference between parental donations and what is still owed. C4) People who change their minds My opponent says that if a child does not attend college or drops out, parents can liquidate the college fund. However, people often change their minds and decide to attend college later in life. These people would not be able to afford college without student loans. C5) Stock market crashes Often, people save for college by investing their money in the stock market. A downturn would erase someone's college savings, necessitating student loans. C6) Lower attendance Since many people would now not be able to afford tuition, fewer people would attend college, law school, medical school, graduate school, and business school. Educational declines over a period of many years would erase trillions of dollars from the U.S. economy, as people become manual laborers instead of engineers, doctors, and lawyers. For all of the above reasons, I urge a Pro vote. ==Citations== [1] http://tinyurl.com... [2] http://tinyurl.com... [3] http://tinyurl.com... [4] http://tinyurl.com... [5] http://tinyurl.com... [6] http://tinyurl.com... [7] http://tinyurl.com... [8] http://tinyurl.com... [9] http://tinyurl.com... [10] http://tinyurl.com... [11] http://tinyurl.com... [12] http://tinyurl.com... [13] http://tinyurl.com...