Student Loan Debt Forgiveness Stimulus For The Economy

Student Loan Debt Forgiveness: Stimulus for the Economy Alan Collinge did not mean to become the poster child for student loan debt injustice. He was an average American with an average American s plan: get a student loan, go to school, get a good job, pay off student loan, get married, get house with white picket fence, have kids and grandkids, and die happy. After attaining three degrees in aerospace engineering, Collinge was left with a debt of approximately $50,000. He went to work at Caltech in 1998, and made a poor to middling salary of $35,000 a year. And, he began to repay his student loans. One day, Collinge realized he was going to be short a payment, called the bank to let them know, and was assured that everything was going to be fine. He continued his payments the next month, only now he was receiving statements that every payment he made after that one shorted payment had a late charge attached to it. When Collinge called to have the error rectified, he found out that 1 ) he did not have a federal student loan, but a loan through a for-profit company and, 2) the company was not going to remove the late charges. This was the tip of a very large iceberg that was about to sink Collinge s life plan, and the beginning of a story that is all too common among American college graduates, especially since 9/11. It turns out, debt is big business, and corporations have former students by the purse strings. Student debt totals more than $1 trillion in the UnitedShow MoreRelatedPros And Cons Of Student Loan1256 Words   |  6 PagesApplebaum laments that from the student loan industry point of view, the student debt is there to help the loan providers amass funds from the youngest, economically vulnerable and financially unstable of which graduates form the majority. The loans have come with immense opportunity cost as the â€Å"educated poor† are not able to buy homes, invest or innovate, start businesses or engage in economically viable activities wh ile the few up the echelons of power are benefiting. Tuition rates have escalatedRead MoreLoan Loans And Loan Debt1785 Words   |  8 PagesUnited States Students are beneficiaries of student loans summing up to around $1.2 trillion. Student loan debt has grown to surpass consumer credit card debt to settle only second to mortgages. The great burden of loan repayment on graduates forced activist groups championing for loan forgiveness emerging led by Robert Applebaum. The federal government proposed policy responses encompassing reduction of interest rates, more flexible and enabling loan repayment plans, pardon of student loan schemes andRead MoreIntroduction. In The Recent Years, There Has Been An Increasing1016 Words   |  5 Pagesfees for college students. This has been brought about by high cost of living and inflation. In addition, college tuition fees today as compared to 50 years back have increased exponentially. As a result, more students are opting to applying and taki ng student loans provided by the federal government. Consequently, statistics show that the amount of student dept is souring. This has led to economists start debating on the impact the ever-increasing student dept has on the economy of the United StatesRead MoreIs Forgiving Student Loan Debt A Good Idea?1009 Words   |  5 PagesForgiving Student Loan Debt a Good Idea?† states Robert Applebaum’s solution for student loan debt is a â€Å"radical and wildly unfeasible solution† in both economically and politically. Applebaum’s proposal is to â€Å"provide a one-time bailout of student debt†¦as a way to stimulate the still-limping economy.† However, Webley counters the solution has to have â€Å"the purported benefited and fairness of a one-time student loan bailout.† In Webley’s essay, in the sixth paragraph she mentions the average debt totalRead MoreStudent Loan Loans Should Not Be Forgiven938 Words   |  4 Pages Should student loan borrowers be forgiven for their debt? The cumulative total of student loan borrowing has already reached $1 trillion dollars already make up more than half of what Barack Obama is pushing to cap the amount any borrower must pay back and forgive outstanding debt after 20 years, even so calling to forgive some or all of the debt that is escalating. Robert Applebaum, the Author behind the Student Loan Forgiveness Act, believes that student loan should be forgiven to highlight anRead MoreIs Forgiving Student Loan Debt A Good Idea?1227 Words   |  5 PagesForgiving Student Loan Debt a Good Idea?† states Robert Applebaum’s solution for student loan debt is a â€Å"radical and wildly unfeasible solution both economically and politically. Applebaum’s proposal is to â€Å"provide a one-time bailout of student debt†¦as a way to stimulate the still-limping economy.† However, Webley counters that the solution has to have â€Å"the purporte d benefited and fairness of a one-time student loan bailout.† In Webley’s essay, in the sixth paragraph she mentions the average debt totalRead MoreGraduation Speech : College Is Not A Opportunity1817 Words   |  8 PagesWithout a doubt, today’s purpose of college is to foster student development. However, it’s become unclear with the rising costs of tuition as well as the growing importance of preparation for a job upon graduation. In fact, universities are no longer seen as simply a place of higher education. They are rather professional junctions from which students can become secure jobs and steady income afterward. This is partially due to the fact that graduating high school is no longer seen as an accomplishmentRead MoreStudent Loan Debt And Why It Is A Problem Essay1507 Words   |  7 Pages Student Loan Debt and why it is a Problem Student loan debt affects college students all over the United States. Today students are having to take out loans in order to pay for all of their college expenses. It can be a pain to deal with the hassle of paying back the loans. The problems with student loans include causing students to go into debt that they are not able to pay them off in the given time which makes them put major life decisions on hold, and the debt stay with the student evenRead MoreStudent Loan Crisis Research Paper1332 Words   |  6 PagesMany of the protesters occupying Wall Street and other places say they are upset about the rising price of going to college. There is little dispute today that the number of students who have debt has increased, and that the amount of money they have borrowed has gone up (Billitteri). Many students incur large amounts of debt that will never pay dividends in higher wages or greater job satisfaction, and they graduate into a world with weak employment prospects. Its a b etrayal of the American socialRead MoreThe Obama Administration : The Bush Administration Essay1760 Words   |  8 PagesObama has favored internal stimulus packages. So is deficit spending is as necessary as the freedom with our budgets over the last several decades indicates? As millennials, most feel the last 30 years indicate that it is an integral part of our economy: there has never been a moment where the national checkbook has been completely ignored. Joseph Stiglitz, a nobel prize winner, argues that deficit spending increases economic growth and decreases long term government debt (governmentisgood.com). Deficit