As a new school year unfolds, the perennial issue of exorbitant higher education costs once again takes center stage. President Biden’s efforts to alleviate student loan debt have been met with legal challenges, with the Supreme Court recently ruling his executive order on loan forgiveness unconstitutional. Undeterred, the administration has expanded income-based repayment options, sparking predictable partisan debates.
Amidst these political maneuvers, the moral dimensions of the student debt crisis often get overshadowed. However, Christian theology offers valuable insights into the underlying ethical concerns, particularly through its teachings on usury.
Usury, traditionally understood as any form of charging interest, has deep roots in Christian moral thought. Before the Protestant Reformation, the Church largely prohibited usury due to its potential to exploit borrowers. Scriptures warned against profiting from the financial distress of others, equating the practice with extortion and condemning those who took advantage of the needy.
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In contemporary society, while bankruptcy laws offer some protection, the asymmetry between lenders and borrowers persists, particularly in the realm of student loans. Government-backed student loans, exempt from many bankruptcy protections, incentivize lenders to extend credit without due consideration of borrowers’ ability to repay. This results in a system where low-income and high-risk students are disproportionately burdened with debt, reminiscent of the exploitative practices condemned by ancient theologians.
President Biden’s recent actions may provide temporary relief, but they fail to address the systemic issues at the heart of the problem. The structure of federal student loans perpetuates a cycle of debt and constrains alternative pathways to education for marginalized communities. To truly address the moral imperative at hand, we must reform the system itself, ensuring that access to education is equitable and just for all. As we embark on this new school year, let us reflect on the root causes of student debt and work towards meaningful change.
