If there were a magic bullet that could cure the nation’s economic woes, how fast would you advocate for using it? There are many people out there who are saying that forgiving student loan debt is that magic bullet. Their argument is that student loan debt has grown so massive that it is preventing people from being able to take part in the normal activities we could on to move the economy forward. People have so much debt that they are putting off buying homes and getting married and having children – all things that turn them into much more significant consumers.
It is likely that student loan forgiveness would help ease tensions for some people in the short term, but the long term consequences would be unforeseen. Would it lead to people calling for erasure of all categories of debt? Would the government collapse under the weight of the unpaid loan debt? There would certainly be consequences, so proceeding slowly with programs that target certain occupations can mitigate any potential problems. Learn more about the case for student loan forgiveness from this infographic.