Why Australia Should Not Follow in Biden’s Footsteps and Cancel Student Debt
Commentary
A nanosecond after U.S. President Joe Biden announced the partial cancellation of American student loans, a collection of interest groups demanded the Australian government do the same.
The government should not comply. Cancelling Australian student loans is unfair, unnecessary, and unlikely to influence the courses that students choose to study.
Why Is It Unfair?
Contrary to the rhetoric of some interest groups, forgiving student debt does not make education “free.”
As long as academics wish to be paid for their work, education can never be free.
The government currently collects around $4 billion (US$2.7 billion) yearly from student loan repayments. If graduates’ debts are forgiven, the average Australian taxpayer (including low-paid workers who never had the opportunity to attend a university) will have to make up the shortfall….