Essay Example on Forgiving Student Loans Student Debt

Forgiving Student Loans Student debt is one of the most high rising crises in America essentially the amount of money American students owe to debt ranges to about 1 48 trillion Statistics have shown that Americans now owe more money in student debt than in credit cards One of the most asked questions upon Americans is should student debt be forgiven There are many benefits that can come with forgiving student debt that can not only affect the students but it could also improve the economy by spurring economic growth These loans play a large effect on our economy by preventing people from participating and investing into it If these loans were forgiven it would have an extremely quick effect on the economy by causing rates to increase In the article Would Loan Forgiveness Stimulate the Economy the author states He argues that this would have a multiplying effect that tax revenues would go up the credit markets will unfreeze and jobs will be created and that the fastest way to revive our ailing economy is to do something drastic to get consumers to spend Robert Applebaum and Student Nation claim in their article Forgive Student Loan Debt Five Years On Because of this debt more than 40 million Americans are not buying houses or cars starting businesses or families or otherwise to contributing to rebuilding the economy 

The authors express that this large percentage of Americans in Avalos 2 debt can possibly be holding back economic growth Those who have met the requirements can be qualified to be forgiven of student loans after 20 years Within that expansion of time it's not likely the economy will will increase by much Forgiving such a large percentage of student debt could give extreme benefits to the economy's growth Student Debt Relief states in an article Borrowers of new loans starting in 2014 will qualify to make payments based on 10 of their discretionary income New borrowers would also be eligible for student loan forgiveness after 20 years instead of 25 on qualifying payments If a student dies their loans can be completely dropped depending on what kind of school they may go to Private schools for example do not offer the same protection liability as other schools and may not forgive the student loans even if the student dies Many programs are created to help those who struggle with student debt along with government involved work which can pay off one s student loans Becoming a teacher is one way to forgive student loans teaching for a full five academic years For teachers around 5 000 of student loans can be forgiven for highly qualified teachers in subjects such as math science or special education up to 17 500 in student debt can be forgiven The military offers a variety of options to help those pay off their student loans depending on what branch one is in For example the army offers to pay up to 65 000 worth of student loans and the air force offers to pay 10 000 worth of student loans 

The economic side Effects of the student loan crisis the author states Young adults have traditionally been one of the primary drivers of U S Avalos 4 economic growth as they significantly ramp up their productivity and consumption post graduation and into their 30s and 40s They may spend and produce less than those in their 50s but their spending and productivity levels have typically grown faster than those of older adults fueling gross domestic product GDP growth Forgiving student debt can help those feel stable and benefit growth of the economy by possibly allowing those who were in debt to be more economically involved and feel more financially confident Jade Scipioni quotes On the campaign trail Trump proposed student loan forgiveness after 15 years of repayment However Trump and his Secretary of Education Betsy Devos initial education budget have sought to eliminate current loan forgiveness programs Essentially economic growth along with those who suffer from student loan debt can be beneficial when granted forgiveness Benefits of forgiving loans can vary from increasing the economy by multiples to helping young college student become more confident and financially stable