credit: woodleywonderworks
Someone recently suggested that part of the Economic Stimulus Package should be be the absolution of federal student loans.
I like this idea, beacuse I have student loans. I’m not really sure how much money the government has tied up in these loans, but I don’t think they make up a huge portion of the money collect each year. About 23% of US adults has a degree, so there is a good change that they have some amount of debt associated with it. Let’s guess that half of them owe the government some amount of money.
In terms of getting money circulating adding $50 – $250 per month to the budget of 11.5% of the population could be phenomenal. Because, of course, those people skew young they are less like to save the money and more likely to spend extra money on entertainment or general consumption. That crucial 25 – 35 age group (which I am part of) is young enough to be frivolous and old enough to be earning money. Plus, the likelihood of these people defaulting on other debts will be decreased significantly, meaning less stress everywhere else. Also, it implicitly encourages education and makes my debt to income ratio good enough to qualify for a loan.
So, I want to float the idea that President Obama should pardon my student loans, so I can get a friggin’ line of credit.
