President Joe Biden has extended the student loan payment moratorium for 90 days. Don’t balk at students but the system.
Student Loan Forgiveness
A message to President Biden, we need student loan forgiveness, not deferral. It is important to note that in the aggregate, loan forgiveness is not a giveaway but a sound economic decision.
One of the studies Ramamurti shared is a 2018 paper from the Levy Economic Institute of Bard College using 2016 data that looks at the effects of student loan debt forgiveness. The authors write that a one-time cancellation of the $1.4 trillion outstanding student debt held would translate to an increase of $86 billion to $108 billion a year, on average, to GDP.
Cancelling student debt could also mean current monthly payments could go toward savings or other spending. Per the Federal Reserve report, those who make payments usually pay about $200 to $299 per month. Ramamurti tweeted that this “is like sending those people a check every month.”
And it is time for those who have profited from an educated populace to contribute to their education. They must fund loan forgiveness. Check out my rant and give me your thoughts.