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Originally Posted by Ohio
There's no way past student debt will be forgiven by Congress. Why should expensive Oberlin College tuition be forgiven for someone whose only ambition was to be a Social Justice Warrior taking down a local sweet shop? They could have gone to the Community College for 1/10th the cost, and got a useful degree.
Warren's plan is just a novel campaign strategy. Everyone knows that college age kids have more time and energy than the working class and the elderly. Sander's people may make the most noise, and be the most proficient on social media, but these kids can't even support themselves. Their small donations are Daddy's money anyways. |
Total US Student debt carried by the government is $1.5 trillion. That is about 1/3 of our budget. Total US debt is 22 trillion. Wiping out this debt would increase our overall US debt by 6.8%. However, for every single person that had the debt forgiven it would improve their balance sheet tremendously, which in turn would enable them to borrow $2 trillion or more, most likely for mortgages and cars. It would be the biggest jobs program and stimulus package ever given to the US. Obama's stimulus package was about half of that ($720 billion).
You could see it as an investment in college graduates. So one possible way to roll it out would be to wipe out half. But realize this, if this resulted in $2 trillion in new purchases 40% of that returns to the US the first year in taxes.