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Student Loan Debt Should be Forgiven

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Does the amount of student loan debt have an effect on the economy? If so would forgiving student loan debt help lower the national debt or would it just increase it? According to Mary Claire Fischer, a writer for Kiplinger’s Personal Finance magazine, “two-thirds of students who receive bachelor’s degrees leave college with an average debt of twenty-six thousand dollars” (Fischer). This means that the average student debt has doubled since 2007 (Ross 24). The total student loan debt is $1.2 trillion with $1 trillion being from federal student loans (Denhart). This debt accounts for six percent of our nation’s $16.7 trillion debt (Denhart). Since student loan debt is such a big part of the national debt, if the student defaults on their loan then the United States tax payer has to carry the burden of the loan (Denhart). Students who are graduating with debt do have a couple of different options that they can choose from. There is a six month grace period after graduation to allow the student time to find a job and programs to try to help eliminate debt. “The Consumer Financial Protection Bureau estimates that one-fourth of the American workforce may be eligible for repayment or loan forgiveness programs” (Atteberry n.p.). The problem with these programs however, is that they are hard to get into and stick with.

Some of these programs that are options for students may require that student to move to another city or even another country. This option would work well for someone who is able to move, but what about someone who cannot leave where they currently live. These graduates may not want to leave because of family for example. Another problem with these programs is that the student with loan debt must fully comp...

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Denhart, Chris. “How the $1.2 Trillion College Debt Crisis is Crippling Students, Parents, and the Economy.” Forbes. 7 Aug. 2013. Web. 13 Mar. 2015.

Fischer, Mary Claire. “Student Loan Forgiveness: What to Know.” MSN. 9 Oct. 2013. Web. 17 Feb. 2015

Morici, Peter. “Forgiving College Debt Won’t Help Students.” CNBC. 14 May 2013. Web. 24 Feb. 2015.

Pisani, Joseph. “A Guide to Student Loan Forgiveness and Repayment Options.” Huffington Post. 26 Sept. 2013. Web. 21 Feb. 2015.

Ross, Andrew. “Mortgaging the Future: Student Debt in the Age of Austerity.” New Labor Forum (Sage Publications Inc.) 22.1 (2013): 23-28. Academic Search Complete. Web. 13 Mar. 2015

Webly, Kayla. “Is Forgiving Student Loan Debt a Good Idea?.” TIME. 20 Apr. 2012. Web. 17 Feb. 2015.
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