Friday, August 24, 2012

Student loan morality

Today's Mary Holm column has numerous correspondents complaining about the morality of exploiting the interest free student loan policy:
The dilemma of "to repay or reinvest" is morally and ethically bankrupt, and my advice to your correspondent is: Your son should repay his dues. Student loans are not a right but a privilege. The more they are abused the less there will be for future generations.
In my view, it would be immoral to not utilise the current student loan system to its fullest, in exactly the same way as it would be immoral to pay more tax than you were required to.  An individuals responsibility is to himself and his family, not to society as a whole.  Why would I voluntarily forego some of my own wealth to the collective, to the detriment of myself and my family?

The correspondents are also only questioning the morality of receiving an interest free loan when in their view it is not required.  I assume they are equally outraged by the middle class receiving Working for Families payments, universal superannuation and other transfers?

Oh that's right, it is entirely moral to confiscate the wealth from productive individuals to satisfy the "needs" of the collective.

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