Would Forgiving Student Loans Stimulate The Economy?
10 Feb
An injection of cash is considered by many to be a potential way of fixing economic problems in the UK and US. With every corporate bank and business bank reticent about lending how is the average man on the street going to feel secure enough to spend freely?
Robert Applebaum, an attorney from New York, has suggested that forgiving student loans would help stimulate the economy ‘from the bottom up’. Unfortunately the chances of this happening are very slim but we ex-students live in hope. Applebaum says that the plan would bail out the “hard-working, educated middle class” struggling to increase their savings in the face of debts occurred at University.
My approach to my student loan debt is to ignore it completely, I’m fairly sure this is what economists called ‘a bad idea’ ™. Calling off student debts would allow graduates to set up small businesses and even think about getting onto the housing ladder.
Several Facebook groups have been set up in support of the idea as well as groups protesting against the high rates of interest charged on the loans. Those in support say that forgiving outstanding loans for those that earn under a given amount would be making investments in the future of those individuals.
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