A people’s bailout

The government should forgive student loan debt to stimulate the economy.

by Daily Editorial Board

Rep. Hansen Clarke, D-Mich., introduced a new and creative idea to stimulate the economy that should appeal to most college-goers: forgive student loan debt. This plan would jump start an economy thatâÄôs in desperate need of help, while making the lives of students much easier.

Today, earning a college degree is important, but it does not guarantee financial security after graduation. The percentage of bankruptcy filers with a bachelorâÄôs degree rose to 13.6 percent last year, according to a study by the Institute for Financial Literacy. With the bad economy and the many challenges for students trying to find a job, itâÄôs time for students to get a break.

After numerous huge banks received bailouts during the recent financial collapse, itâÄôs time for the American people to get some help with their own debt issues, which are suppressing economic demand severely.

A bill that forgives student loan debt would make thousands and thousands of young Americans better able to spend money. With tuition hikes, high rent costs and debt piling on each year, the last thing students want to do is spend. If some debt were forgiven, young people would be able to buy big-ticket items like homes and energy-efficient cars that would help solve the economic disaster the country is currently facing. An unburdened generation could raise home prices and support a revitalization of American manufacturing.

This groundbreaking idea has received little attention in Congress and the media. Before being dismissed, it should be thoroughly reviewed and debated throughout the nation. ItâÄôs time for hard-working, determined citizens to receive a much-deserved financial break that would in turn help AmericaâÄôs economy.