Should All Student Loans be Forgiven? | 09.23.11

Posted in News, Repayment By Student Loan Network Staff

Relaxing with MoneyRobert Applebaum has an innovative idea, one that has been gaining popularity nationwide since 2009. What if to boost the economy, we forgive student loans? A radical idea, but it’s an idea that has been adopted by congressman Hansen Clarke (D-MI) who recently introduced the bill H. RES. 365, but more on that in a minute.

Applebaum’s website “forgivestudentloandebt.com” is dedicated to providing information about this idea and inspiring people to join the movement. The thought behind this grassroots movement is to stimulate the economy by allowing people to spend more money, rather than using it to solely pay off debt. Here’s some background straight from the source:

“ForgiveStudentLoanDebt.com is a grassroots movement that began as a proposal authored by Founder, Robert Applebaum, entitled “Forgive Student Loan Debt to Stimulate the Economy”  which he posted to a Facebook group by the same name in late January, 2009… ForgiveStudentLoanDebt.com was founded so as to take this growing grassroots movement to the next level through lobbying, education and advocacy for a complete overhaul to the way higher education is financed in this country.”

Congressman Clarke’s bill has the same goal. The short version is that this bill seeks to eliminate personal finance burdens of Americans in order to stimulate the economy by alleviating debt. This not only includes student loans, but mortgages and other types of personal loans as well. To read the full bill text, click here.

While Student Loan Forgiveness is not a new idea, the wide-spread, federal implementation of it has been called an idealistic and unlikely approach to stimulating the economy. However, individuals wishing to support this movement can sign the petition at SignOn.org. Whether you support or oppose this idea, change can not be effected without your input; write to your congressperson to voice your opinion on this issue!

To learn more about other forgiveness and repayment options, visit StudentLoanNetwork.com.

And don’t forget to let us know what you think. Does this bill seem reasonable? Do you think it will or will not work? Leave a comment below to share your thoughts!


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146 Responses to “Should All Student Loans be Forgiven?”

  1. Phyllis says on October 26, 2011 at 2:15 pm:

    I am stunned that we are even discussing this. A loan is a contract … you borrowed the money, you must repay it. What’s next … forgive all credit card debt, car loans, mortgages? This Country is at a turning point and we need to be focused on cutting spending, not adding to our debt. Obama doesn’t have any interest in a recovery, only in being re-elected, and if he has to promise a “Unicorn in Every Pot, he’s willing to do it! In 2008 he practically promised to part the Red Sea, and all he’s done is create an additional $4 Trillion in debt. Now he’s going around the Country to colleges and high schools in an attempt to win the vote of the uninformed youth by promising them the moon and the sky. The madness has to stop!

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  2. A says on October 25, 2011 at 10:25 pm:

    In most European countries, higher education is free. Why should Americans have to pay their way through higher education? Forgiveness of student loans won’t cost much. If banks could be helped out, so can students, who deserve it more than anyone as they are the future work force of tomorrow.

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    • Taylor says on June 27, 2012 at 8:21 am:

      That’s because the taxes that people also pay in countries like France are astronomically higher than those here in the US. Some see that as a valuable trade-off though for things like free education and more social welfare programs

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  3. Sara says on October 21, 2011 at 4:17 pm:

    Those of us with student loans have a legal (and ethical) responsibility to make good on the promise we made when we borrowed the funds. What kind of society are we living in when a student can borrow $100,000 for a private education, never pay a dime of principal or interest, and expect the debt to be magically wiped away with a magical congressional wand?

    A post-high school education in this country is a luxury, not a necessity. It is a choice, and it is a privilege. It is a blessing in our country that any one who really wants to receive a college education (or post-graduate education for that matter) has the opportunity and resources available to do that. That doesn’t mean one will receive their education for free, be able to attend any college one desires, or graduate without any ill financial consequences or debt. It just means the opportunity is there, although some will inevitably have to sacrifice for it more than others.

    By taking out student loans, you are investing in your future, believing that the education you receive will provide you with enough income to later in life make good on your loans. That’s how loans work. Someone lends you money today, in exchange for the return of the money (and interest) at a later date. Loans are contracts. Loans are promises to pay. Loans shouldn’t be forgivable.

    I wrote more about it: stayathomeworker.com/2011/10/20/new-stimulus-idea-forgive-student-loan-debt-no-way/

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  4. Manu says on October 3, 2011 at 6:11 pm:

    Yes it will stimulate the economy. If not forgiven, student can be offred a refinance option to refinace their current loan at lower rates today. If the interest rate drop to 3% from 7% students can spend the extra money to buy goods, buy house etc. Help the economy get a jump.When houses can be refinaced, other loans can be refinaced why not refinance the student loans at lower rate? IF a studaent has $100,000 loan , they can save app. $300+ dollars per month ( if the rate drop from 7% to 3%) and use that money to spur the economy.

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  5. Pam says on October 1, 2011 at 12:52 am:

    I think this is a great bill and should be considered. It is the best idea yet of helping individuals that took the time to get an education to better themselves in the work-a-day world to acertain an education. I have been employed since 7/12/2011. Have been unable to find a part time job that would enable me to go to school full time and work also. Due to last years income based on income taxes. I do not qualify for financial aid. Had to apply for stanford loan which payable back 6 months after leaving school, if a job can be obtained at that time.

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  6. Jeanette says on September 29, 2011 at 12:13 pm:

    I think this bill is great! Considering you can’t refinance your student loans, it is the next best thing in helping individuals who took the time to better themselves and society. I’d be happy with a refi, but I won’t say no to student loan forgiveness!

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  7. thomas.m says on September 27, 2011 at 10:10 pm:

    Our country is already trillions of dollars in debt. As much as I would love to be forgiven my student loans, I do not believe the stimulation of the economy would out weigh the cost. Just think about how many people attend college on loans!

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  8. Crystal says on September 27, 2011 at 10:05 pm:

    Would be nice!

    Reply To This Comment
  9. christina says on September 27, 2011 at 9:39 pm:

    Yes, they should be forgiven. Student loans are getting out of hand and many won’t have the resources to pay them off, it even gives me an incentive to go somewhere that i thought i couldn’t because of finances.

    Reply To This Comment
  10. molly says on September 27, 2011 at 7:54 pm:

    i think they should forgive them b/c if you are pressured with loans, you can’t help the economy

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  11. Matthew says on September 27, 2011 at 6:24 pm:

    Possibly. The circumstance of each individual dictates what should happen.

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  12. Jessica says on September 27, 2011 at 4:18 pm:

    Great!!

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  13. kayla says on September 27, 2011 at 4:07 pm:

    In an idealistic world, education of any sort would be free, but sadly this is not the case. For people who “Need” loans and are having money problems already, it seems logical to forgive these loans because they cant start to help the economy until those debts are solved.

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  14. virgomomwriter says on September 27, 2011 at 3:38 pm:

    If the Gov’t can “help out” banks, rich people and corporations, it can help out those who took the time and trouble to get educated. Many work with non-profits and in fields that truly help others. Economically it would be a win-win, in terms of stimulus. I say, yes,

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