I was reading the excellent New York Times blog The Choice this morning and was happy when I read the top headline. A City Council Asks Washington to Forgive Student Loans. Jacques Steinberg explains:
In explaining its action, the council noted in its resolution that “the average debts of students graduating with loans rose from $18,796 in 2006 to $20,098 in 2007, according to the Project on Student Debt.” The Council argued that “forgiving student loan debt would have a stimulating effect on the economy.”
Specifically, the resolution imagines how “responsible people who did nothing other than pursue a higher education would have hundreds, if not thousands of extra dollars per month to spend, fueling the economy,” and that, “as a result, tax revenues would go up, the credit markets will unfreeze and jobs will be created.”
Now, you might not agree with the council, and you might have ideological problems with that kind of debt forgiveness. I think one of the best results of this issue being raised is that it brings the issue of student loans to the forefront. I talked about the issue a bit a few posts ago, and think it’s worth bringing up again.
I know my fair share of friends whose loan debt is way above $20,098. In fact, so many that I almost want to call shenanigans on that figure, but whatever. So, students, graduates, and anyone else–what do you think about this? Is a complete or partial debt forgiveness the way to go? Would it affect how you looked for a job? For example, if you suddenly had no loan debt, would you be willing to take a job that paid less? I’m curious to hear your thoughts!