After researching one of the current movements, Government Forgiveness of Student Loans, I have decided to write about arguments in favor of and against this interesting topic. The proposed bill H.RES.365 would provide student loan debt forgiveness as one more road to an economic stimulus. This new bill is being lead by U.S. Congressman, Hansen Clarke (D-MI).
H.RES.365
Latest Title: Expressing the sense of the House of Representatives that Congress should cut the United States' true debt burden by reducing home mortgage balances, forgiving student loans, and bringing down overall personal debt.
The idea behind the bill is that by cutting the student loan debt, more jobs would be created and more financial security would be provided. As per the Congressman, American families are overburdened with student debt.
H.RES.365 makes sense in various ways. Politicians have been able to bail out the big banks and corporations, now it is the American public who needs a turn. The government can easily extend a helping hand to the graduates of our universities and colleges. After all, these young people are in fact going to be the leaders of tomorrow.
Like everything else the pros and cons are strong. Do you agree or disagree with Student Loan Debt Forgiveness?
Here are some compelling arguments against this bill. For example:
An article in the Freakonomics website written by Justin Wolfers, who says, "that this plan does not make economic sense." Actually, he's more direct than that, writing, "it is the worst idea ever" and emphasizing, "I bet that the proponents can't find a single economist to support this idiotic idea."
Wolfers gives several reasons for why forgiving student loan debt is "idiotic" and would do little to stimulate the economy. Wolfers points out that if you want to simulate the economy, "you get more bang-for-your-buck if you give extra dollars to folks who are most likely to spend each dollar and that would be dropouts." If college graduates get their hands on the money, "Much of it would go into the bank. No spending there. Wolfers also argues that college graduates typically have high incomes, so why should the government eliminate their debt and not the debt of the high school dropouts, who are more in need of the money.
Student Loan Debt Forgiveness. What is your view on this controversial subject?
It will never be settled but a decision will come about at election time. This author personally had to pay back student loans for herself and for her daughter, but it was done, accomplished, payed off. It was difficult for me because I was facing a lot of debt at the time, but as I stated, it was done!
"Did you ever think that making a speech on economics is like pissing down your leg? It seems hot to you but not to anyone else." -Lyndon B. Johnson, 36th President of the United States
Please visit Consumer Debt Relief Blog for more information regarding consumer debt relief and financial information.
H.RES.365
Latest Title: Expressing the sense of the House of Representatives that Congress should cut the United States' true debt burden by reducing home mortgage balances, forgiving student loans, and bringing down overall personal debt.
The idea behind the bill is that by cutting the student loan debt, more jobs would be created and more financial security would be provided. As per the Congressman, American families are overburdened with student debt.
H.RES.365 makes sense in various ways. Politicians have been able to bail out the big banks and corporations, now it is the American public who needs a turn. The government can easily extend a helping hand to the graduates of our universities and colleges. After all, these young people are in fact going to be the leaders of tomorrow.
Like everything else the pros and cons are strong. Do you agree or disagree with Student Loan Debt Forgiveness?
Here are some compelling arguments against this bill. For example:
An article in the Freakonomics website written by Justin Wolfers, who says, "that this plan does not make economic sense." Actually, he's more direct than that, writing, "it is the worst idea ever" and emphasizing, "I bet that the proponents can't find a single economist to support this idiotic idea."
Wolfers gives several reasons for why forgiving student loan debt is "idiotic" and would do little to stimulate the economy. Wolfers points out that if you want to simulate the economy, "you get more bang-for-your-buck if you give extra dollars to folks who are most likely to spend each dollar and that would be dropouts." If college graduates get their hands on the money, "Much of it would go into the bank. No spending there. Wolfers also argues that college graduates typically have high incomes, so why should the government eliminate their debt and not the debt of the high school dropouts, who are more in need of the money.
Student Loan Debt Forgiveness. What is your view on this controversial subject?
It will never be settled but a decision will come about at election time. This author personally had to pay back student loans for herself and for her daughter, but it was done, accomplished, payed off. It was difficult for me because I was facing a lot of debt at the time, but as I stated, it was done!
"Did you ever think that making a speech on economics is like pissing down your leg? It seems hot to you but not to anyone else." -Lyndon B. Johnson, 36th President of the United States
Please visit Consumer Debt Relief Blog for more information regarding consumer debt relief and financial information.
