The problem with the student loan debate is it is entirely couched in the individualist cost-benefit paradigm. Nowhere in the mainstream is it acknowledged that a society is healthier (and wealthier) with smarter and more well-rounded people. It's entirely about whether 'x' degree will make an individual richer, or not, and whether the debt is worth 'the risk'. Because we know that all good capitalists take on risk before making their fortunes.
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This Bloomberg article is a good exhibit.
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Let me see if I can agree with you and challenge you both.
1. "Nowhere in the mainstream is it acknowledged that a society is healthier (and wealthier) with smarter and more well-rounded people."
Agreed. I would not have thought of that argument, but I buy it.
2. Your post suggests that society should acknowledge the benefit that society gains when individuals accumulate debt in getting an education.
But that argument is founded on the view that the student debt is accrued because of individual decisions to get educated.
(I think this individualist foundation weakens your argument. I think your argument would be stronger if you could also argue that the debt is not the result of decisions to borrow.)
Economic policy encourages the use of credit, because policymakers think that's good for growth.
Our policy of encouraging the use of credit is the true cause of our excessive debt.
It is policy that induces the excessive reliance on credit. Not individual borrowers.
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