Is cancelling student loan debt a good idea?
Moreover, mortgage debt is the highest form of outstanding consumer debt in the U.S. Cancelling mortgage debt for millions of Americans arguably could benefit more borrowers. 3. Student loan cancellation doesn’t stimulate the economy Warren says cancelling up to $50,000 of student loans per borrower could cost taxpayers $600 billion.
What is the underlying sentiment behind Student Loan Cancellation?
The underlying sentiment, however, is based on personal responsibility and sacrifice. Some opponents of student loan cancellation believe that each borrower is responsible to pay back the loan they borrowed, whether it’s a student loan, mortgage or credit card debt.
How much would cancelling student loans cost the economy?
Warren says cancelling up to $50,000 of student loans per borrower could cost taxpayers $600 billion. However, that doesn’t mean that $600 billion goes back into the economy today. The $600 billion doesn’t go back into the pocket of student loan borrowers, who then can spend money on buying a home or supporting their local businesses.