Will forgiving student debt stimulate the economy?

I dont want to be a person who chooses the easy way out, hell after graduation i had a decent job for three months , drove 4 hours (in a day) everyday to work and i made payments towards my loan diligently but that was a year and a half ago and i still dont have a job. So dont tell me that i am trying to woodwink anyone by demanding that my loans be eliminated. Higher education should be a birth right not a privlige, and definetly not a burden. But even after being burdened, i am still ready to take a job that requires me to drive 80 miles one way and back every day, but give me a job!!!! If not, than i think its only fair to have all student loans forgiven and i think those who have already paid their loans should be given their money back so they can pay off other loans and people can live like Humans NOT Slaves.
It is in our hands to take whats ours just as they take from us what they think is theirs. SHUTDOWN the feds and all monetary institutes. People need to govern themselves and not elect their slave masters, for we are what we choose to be. We are born free, then why do we live like SLAVES??
If they can come up with fancy papers with fancy writting to enslave us then we should come up with our own fancy stationary to liberate ourselves. I am free and so are you if you want to be!

i don't know about the stimulation - but it would make most students lives better if that happened.

ok, here's another point. I seem to have actually gotten a better education investigating various subjects myself than I actually got from paying a lot of money for college. As a matter of fact in school the teachers often seemed to praise and delight in kids who merely parroted back what they had been told a couple minutes earlier. I was honestly very disappointed with my college experience, most of the professors were too busy trying to work on a book or something than actually taking time to teach. Not all teachers of course. But a lot. Our education system is faulty and this goes deeper than just the effects of the indentured servitude that students are getting into for education. Perhaps we need to think all the ways we already have to educate ourselves without having to go into huge debt.

Yes it will absolutely help the economy. People will have more money to spend, they will have to volunteer their time probably to get the break on their loans, so that would provide jobs for people.

I have heard of several schemes for this to work. Does anybody know of any of the plans being floated for this program?

FUCK YEAH! I REGRET COLLEGE BASED SOLELY ON THE LOANS! Oh and shitty parking.

How 'bout we do a little experiment of our own, since it seems we are being used as guinea-pigs for various other purposes anyway....

Everyone with a student loan DOES NOT PAY IT for the months of April and May '09. If we do this we will be able to see the repercussions and demonstrate exactly how serious this issue is. Once we have observed this we will be able to take steps now to deal with the very real possibility of what will happen if all of those owing these debts cannot pay them at all.

I signed my first student loan papers for at least $10,000 when I was 17. Which should have been illegal. I mean, we're not even legal to drink until 21. It was assumed that I would do this my whole life, and at the time I didn't think to challenge it.

This system doesn't work and if the younger generation has to exhaust themselves daily on the hamster wheel just to try to pay these absurd loans back how will we have time to step back and get a good look at what is going on? We get our education at the Company Store.

I can't know whether it would stimulate the economy to forgive student loans, but I do know that it would only continue the vicious downward cycle of boom & bust that's gone on since 1913 when the F(red) started making our economy into its butt monkey.So if people think that it would be anything more than a quick fix only delaying the inevitable collapse of the Dollar, they're only kidding themselves. By now we all know that our standard of living has been nose diving for 45 years since both the Gold & Silver Standard ended. The only way I know of that would REBUILD the U.S. economy into the sound financial system it was for the first 62 years of this nation's history would be to find a way to at least return it to the way it still was in 1913 before it was sabotaged. Meaning to restore the Constitutional basis for coining precious metals, and issuing only a ltd. number of U.S. Notes which would be precisely matched to the mintages of coins to be redeemed, and ending counterfeited & unlimited Federal Reserve Notes with their inferior clad coins. From 1792-1854 the original standard of weights & measures was so constant that inflation didn't exist because money was so extremely stable in value. Coins were so big that a penny was bigger than a quarter yet not quite as large as a half dollar. So big that 1/2 pennies were minted. So even the poorest person had enough money to live on. And there was a balance maintained between rich and poor. But something occurred which ended the Large Half Cent, then the Large Cent replaced with a much smaller, thinner version of the penny by 1865.Likely some uber rich scumbag who wanted to get even richer by stealing from the poor, making them desperate, and exploiting their labor to get even richer than that to continue his hoarding. The U.S. Govt. owed it to the People to keep the mines going to match the proper size and amount of coins constant to keep the balance between rich and poor, and to meet the needs of a growing population. When that was subverted by uber rich, it was much easier for them to buy Congress in 1913 and establish the F(red) to complete their Piracy. As of 2000 the buying power of a F(red) note was only 10% of what the Dollar was worth in 1941, and only 3% of what it was in 1907 on the Gold Standard. It's only worth 2% of honest money today. So that when it falls to 1% then 0 % because of the insidious counterfeiting vicous cycle of F(red)eral Reserve Notes instead of Constitutional money, which has made the national debt the F(red) creates force all the sand out of the hourglass, then the uber rich will have all the real money Gold, and we will have zip. That's why the Amero was minted in 2007 in Denver. To replace our subverted money. The dollar is doomed. Waste, Fraud, Piracy, Mismanagement in public & private sectors have killed our economy. Defiblerating anything so corrupted it's already all but died won't transform anything. Until all People start living within their means,stop leaning on credit,and start saving, our "economy" will be too expensive for even the Chinese to maintain. Nothing can change until we start doing things in a different way. Anytime
people are used to being spendthrifts even the idea of holding onto crap that passes for honest money will burn a hole in their pocket.We need to have an economy that deals in the essentials of life to survive.
And we've wasted so much there's not enough real money in the entire world to bail us out of all our combined debt now. So that even the essentials of life
are becoming increasingly unreachable goals. When any country mortgages their future to live in the present as Reagan proposed in 1980, even the idea that it's still their economy is tenuous at best. There's not enough money in the entire world that could exist to replace what Americans burn.

This is what I've been saying along. I mean I truly feel like I threw away the money, anyways, by going to school. First of all college is way overpriced so I get a loan because I was tricked into believing that getting a degree would be the way to success. Now we're all unemployed or barely getting by and we have to repay this useless debt with interest. I value education but I really wish I could give my degree back.

That is an idea that makes sense. I actually was watching the view two weeks ago.. yes I said the view, and Whoopie said that the best way to bail out the banks would be to pay off some of the debt people owe. The whole reason they are in trouble is because people are not paying them, and thus they need the gov's assistance. Well, if you pay off some debt you are effectively killing two birds with one stone.

Henry Ford once said: "If the only business that any business has is making money, then it has to be the poorest business of all " He was referring to usery which is the most evil aspect of Capitalism.(Pharases/Merchant of Venice) Because though necessary,those who loan money don't produce wealth, they interfere with it, and destroy it by enslaving others with debt. And worse. Userers don't make money, they steal it covertly.The USA abandoned the Constitution's requirement that 1. Money could only be coined as precious metals, not printed false promises, and 2. only by the U.S. Mint, not Banks thereby dooming us to this World Recession WE created.The Federal Reserve Act in 1913, was undue influence of a foreign international banking cartel of uber rich usery parasites,falsely claiming that the USA needed a central bank to mediate our economy because of the banking panic of 1907. So instead of passing the FDIC Act in 1913,they legitimized the Monopoly of foreign Sabotage resulting in the Piracy of 40% of our REAL money(Gold)which the brigands shipped to their European banks after manipulating the stock market crash which resulted in the destruction of our money. FDR had to devalue the U.S. dolar to $.60 cents and declare a bank holiday to prevent the bank panic of 1932, and abandoned the Gold Standard. Then they passed the Security Exchange Act to prevent a recurrence, but again too late- the damage was a fait accompli. My point is that Usery has overtaken our Government, our Economy, and exchanged our Gold & Silver for their worthless paper.Waste Management News Service reported that the USA's "secret debt" was $64 Trillion as of August 2007 when the Denver mint produced $800 Billion in solid copper Ameros shipped to Chinese Banks as payment on our black hole debt. $64 Trillion in Federal Reserve note debt=5 years worth of the entire country's GDP. So what is "making money" without producing essential value? Robbery. Per Usery,Big Oil,Big Chemical,Big Pharma,Big GMO-they're all Monopoly parasites destroying our Economy and the People who create it. Genius like Nickolas Tesla, Albert Einstein all warned us going deep into debt would dig our graves. " A fool and his money is soon parted" We need to legaly reform all usery to substitute repayment of money for time as indentured servants.
EZ debt is like fast food. It's an education in slow death.The only things that can be real money are either precious metals or work or Time, because they're valuable,finite creations of God, not people. Educated students of money know that from the material comes profit, from the immaterial-usefulness. I've been a coin collector for 50 years. I own an 1803
Copper Large Cent.(half dollar size) It proves that even a penny of real money is big money.

I'm thinking that forgiving each families credit card debt would pull us out of the recession.

Yes, it does work. It does, believe me! now pardon that shit! NOW!

yes yes yes and yes!

I'm going to have 130+ when done grad school. I would have so much more freedom to take risks and do big things if i didn't have to worry about loans... Dear god I wish this would happen!

What I included on the Petition Signature Page::::

Reaganomics is a failed system with OBVIOUS flaws; Trickle-down 'hope' is hog-wash. THIS phenomenal idea to forgive Outstanding Student-debt by providing amnesty-like terms is genius, considering the bright alternatives our law-makers and filibustering politicians consistently dole out to the nation at-large. The first step in re-stimulating the nation's & planet's economy is to provide a stable base for the hardworking present and future of the nations employee-force, not by ensuring an ability to continue the cycle of credit and instability that inherently exists with it! There is no question as to whether this idea will work, it certainly will not fail (especially not more-so than the system that has so visibly [failed] already)!

I hate this idea. I think the perfect mechanism is to set the clock back and allow bankruptcy to discharge student debts (at one time, student debt could be discharged by bankruptcy). That way, those who can pay will still have to pay, those who can't will have the ability to discharge the debt.

This creates stability in the market (market participants will understand that obligations will be observed unless there are extreme circumstances) and it stimulates the economy by discharging trash debts (debts that will probably never be payed but remain on the books, dragging everyone's balance sheets down).

I see your point, but we're not saying that this is the ONLY money that be spent, but some of it.

When you're talking around $1 Trillion dollars, how much would it cost to pay off even half of student loans for near and recent graduates? A drop in the bucket I'm sure... maybe a few billion?

also, i'm all for giving education a boost in spending, but when it comes to starting at the bottom with spending it needs to come firstly in primary education so that there is equality in ability of students to make it to college. check out how much money from taxes each state contributes their state education and you'll find out that states who contribute most per capita are those that have a higher ranking educational system across many different metrics. i love me some education.

the only difference is that the people who benefit are those with the privilege of obtaining credit and have been accepted into colleges instead the entire banking system as a whole. either way, with the federal government paying off student loans, the banks end up with the money. going the college loan forgiveness route doesn't allow the government to attach stipulations to how the banks can use the federal money. also, in stead of the entire banking system being bailed out, it would be specific banks that give student loans and it would disproportionately affect the banking system. that's just my take although i'm all for my own personal bailout.

This would be perfect!! I'm about to graduate with my BS in engineering and I've got about $21k in student loans on top of $15k on my credit card (after 6 years of college). I don't have a job and the economy isn't really making me very optimistic about finding one, especially where I live.

It would be a like a dream if I got a letter saying my student loans had been paid off... that really would help me get started off on my career without a huge debt to worry about.

yes! free education! scotland can, so why cant we?!

I am all for this....as a an attorney in Texas that still owes over $100K after paying off more than $20K already, this would help unbeleivably....

I think it will free people from their financial slavery position and give them a fresh start. However, it will not solve the whole American Educational System that has created this debt problem to begin with it. In general, the people need to know that Education it is a Credit Investment and not a debt to society. Your challenge will be to convince a group of people in power that they need to apply the economic distributive formula instead of their actual greed formula. It is most likely that they will not going to agree and will fight for their position. The solution then it is for everybody to drop their student loan payments at once and their greed system will collapse in its own terms. Fear Not! Just do it!

That makes a lot of sense actually. The sort of people who are likely to stimulate the mortgage and house buying markets are the ones currently crippled by debt from their education. Lets not forget that the education they receive is on benefit to the whole country.

Does anyone here have any pride? You signed up for money that the entire tax paying population provided and all that is asked in return is that you in fact get this education and pay the money back. It did not belong to you. The minimal interest is a joke. Default on college loans is not going to spur the economy. Repaying the loan will. Getting your girlfriend knocked up is not an excuse for defaulting on a loan. It just shows how mentally challenged you are by not buying a 50 cent condom. This is the generation that may lead the country in the future? God help us all.

THIS is a fantastic idea. Less money poured into financial institutions for loan installments = MORE money spent consuming and stimulating other industries.

Seems like this falls in line with other policies du jour of incentivizing academic pursuits - like education credits in exchange for an expanded definition of public service.

This country should take a cue from the scandinavian social democratic systems. Education and the development of specialists is imperative to innovation and economic stability.

Hell yeah it'll work. If I wasn't dropping three hundred a month paying back those loans I would be debt free and dropping that money off at the cash registers of Best Buy, Barnes & Noble, and the local bars.

it would certainly stimulate my economy

hell yeah to this idea

i would absolutely support this! If i had an extra $250 per month, i would definitely pump it back into the economy for recreational activities!

I love the idea as well, but banks and loan offices accrue much of their profit by our debt. Keeping us in debt seems to be a way that these corporations keep funds coming in at all times and over long periods of time.

I have no means of evidencing my thoughts, it's just my own minds reason.

if you agree sign the patition :-)
http://www.thepetitionsite.com/1/Real-Economic-Stimulus-Forgive-Student-Loans

you have to register (of course) but its fast and there are other great petitions worthy of your time posted on care2 potetion site. Thanks and yes you 2 can make a difference. show me you care. -paid for by care2.com (i just messing) but honestly--go be heard!

Here's some perspective: you have a gifted and educated class of workers poised to benefit the economic system and make major contributions . . . yet student loans instead blanket their potential and hinder their freedom to move and produce. If we want stimulation in the economy and progress, then by god this is the way to go. Seriously.

best idea ever I am a financial consultant drowning in student debt

I'm all for this.... Here's my bullshit situation:

I start school with 2 loans from Sallie Mae...

My girlfriend gets pregnant. I have to get a full-time job immediately to support my family. My loan payments kick in immediately when I stop taking classes (although I'm enrolled).

Now between being without a college degree, and $12,000 in debt amongst other debt/bills.... I can't even pay for my loan. So my credit has eaten it and I have no other option. I've gone with Forebarance multiple times and pushed everything I could, but that option ran out...

So I do not pay my loan at all, because I simply can't afford to. People like me... need a bail-out, because if I had my degree it would be one thing but because of my situation I'm basically fucked if I do fucked if I don't...

Filing for bankruptcy doesn't save you from paying Sallie Mae. Not that I'd want to not pay all my bills, I will but why do I have to bail out financial institutes with my money when I can't afforded to pay my property taxes or even replace the leaky roof.

While I think this would help the economy, it makes me want to bring up the issue of the high costs of college education to begin with. If people weren't paying at least $20,000 a year just to get the education in the first place, then student loan debt wouldn't be an issue.

This would do two hugely important things:

Give recent graduates freedom to persue careers they are now trained for [which would not necessarly be well paid] without worrying about crippling debt - which is automatically good for everyone.

But more importantly it would give poorer folks who are still damned smart a hefty boost to *get* good qualifications. The poverty barrier would effectivly no longer matter.

on the other hand some sort of means testing may be wise.

please say it would!

this is insanely tempting, but yeah, not so sure if we should be giving a crapload of money to a bunch of 22 yo fresh out of school! Circuit City will be back in biz for sure!

of course!! keep feeding money to the americans that are already filthy rich.

So many bailouts and most people still won't see a 2%change.. haha how ironic

Cut out the profit taking middleman (banker) and give it to the working class.

I love the idea as I have student debt. but i have no idea if it is a good idea for the economy

NO, this is the wrong thing to do.

I think a better thing would be to allow student debt to be able to be discharged through bankruptcy. This then would be self regulating in that those who can pay off the debt, would have to do so while those who can't could be discharged.

This would also encourage the lenders to re-negotiate the loans into a more affordable form.

It would stimulate the economy by 1) providing stability and predictability - those who can pay will pay and 2) those who can't would be discharged from the debt, permitting normal consumer behavior to begin again.

You know what would stimulate the economy? Giving the enough money to pay off my credit card debit...then I'd actually have money spend and I would be able to pay my student loans.

This is interesting...
but what the hell kinda college student (or anyone for that matter) makes 150,000 dollars a year?
most people I know don't, even with a combined family income. This would be nice, but is it realistic to just forgive debt owed by a mojority of people in it?
If this were to ever work, (which I doubt) perhaps a lower threshold of annual income would be more realistic?

As an in debt college student, I'll be the first to say that it certainly would be nice, but I don't think it would ever happen, and if it did it's success would most likely be marginal.

Here's a frustrating thing about repaying student loans in the UK: we pay the government monthly but the Inland Revenue pays the Student Loans Company annually. This means they accumulate interest on all that juicy cash for a year before passing it on. We pay the interest on that.

A large part of my student loan went on pizza and vodka Redbulls so I probably shouldn't complain too much - it's my own fault.

student loan amnesty is the right thing to do

At what point will it all stop? Everybody can't be bailed out.

I'm just not seeing how this would stimulate the economy. It's not like the people whose loans are forgiven will now have this huge amount of expendable income.

I can't remember who (maybe peter schiff), but I remember off the back of my mind an economist saying that student loan debt is an indication of a system gone wrong including inflation and other problems.

I myself have it, and am not proud of it, especially being in a top 10 business school where I'm surrounded by rich kids with BMW's. Job markets are tough and I don't think I'll be getting the dream job I could have if i would have graduated 4 years ago...

I don't mind working a less prestigious position, as long as it wasn't fast food, but student loan debt pushes the standards and competition so high!

Forgiving school debt would stimulate my own personal economy.

I am so for this idea! I am a finance major and for the longest I've wondered how does giving money to banks STIMULATE an ecomomy that drives on consumerism? Maybe if I didn't have all these student loans I could buy that plushy house or car I've been eyeing. That's pretty stimulating to me.

fuck yeah...Im broke motherfucker...I owe $100,000 for 1 year...Bailout the people not banks...

no but it sure as hell would make me happy.

sounds great...where do I sign up?