Cancel Student Debt to Stimulate the Economy

11 Feb

Finally!  Someone’s got it right.  And that someone is New York attorney Robert Applebaum who started a Facebook group called, “Cancel Student Loan Debt to Stimulate the Economy.”  Say what you will about Huffington Post, but even they gave Applebaum’s cause a little momentum with this article.  According to the article and the Facebook group, Applebaum wants the government to consider lending a hand to those of us drowning in college debt, which he says would stimulate the economy.

I wholeheartedly agree!  All through our childhoods, we were told we had to go to college if we wanted to make it in this big, bad world.  So we work hard, get scholarships, and dream of getting that smooth job that will enable us to pay off our school loans in no time.  Except that little fantasty is shattered as we hit the real world.  To pay our car insurance, we borrow from our bank account’s overdraft and to pay that we borrow on a credit card and so on and so on–until literally, we are in so much debt, we find there is no way out.  Even filing for bankruptcy costs a hefty $2000!  We are caught in the stranglehold of bills, shut-off notices, and face more hardship, and is the government offering us a bailout?  Not really.  I did hear President Obama offering tax credits of $2500 to college students…hey, what about those of us who already did the college thing?

Besides, some of my loans are federal loans and my grad school loans are through a lender that’s a kissing cousin of Fannie and Freddie Mac–if the banks and other financial institutions get a bailout because they can’t pay their bills, what about the rest of us?  Why should we have to pay off our debt if the richest of the rich don’t seem to have to do the same?  I want change I can believe in, too…and most people just want to scrounge together enough change to pay bills and maybe do their laundry.

I applaud Robert Applebaum for his fine Facebook group, of which I am a proud member (over 40,000 and going strong).  Maybe we won’t get our debt canceled, but at least Applebaum’s got people thinking…and a ton of support from all those former college kids making monthly payments with ridiculous interest compiled upon ridiculous interest.

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No Responses to “Cancel Student Debt to Stimulate the Economy”

  1. pobept February 12, 2009 at 6:04 AM #

    Mmmmmm, you chose to take the loans, you knew the interest rates when you signed on the bottom line, you maxed out your credit cards. Why do you think I, a tax payer, should forgive your debts?

    Pay your loans and credit cards off and stop whining that you are over burdened with debt. Your debt load is a condition caused by you not I!

  2. Dan March 2, 2009 at 6:36 PM #

    First, paying off student loans is the only idea so far that will put CASH (not credit) in consumer’s pockets and, allegedly, that’s all we need to pull out of this mess – a good round of consumerism. Seriously, big companies are getting bailed out for paper losses in a losing battle to fight off reorganization. AIG is a Joke! The gov. should stop throwing good money after bad to prop up disfunctional and inherently doomed companies that would be better off if they were broken up and sold.
    Second, the education costs have increased far more rapidly than salary/pay. Those of you who think people who took out student loans “got what they deserved” or that only those who can truly afford it should go to college are nearsighted and selfish. If college really were restricted to only those who could afford it, we would take a massive step back in time to when only the aristocracy was educated and there was increasing social unrest due to a widening rich/poor gap. In any “developed” country, not to mention a super-power, education should be considered a general benefit to society.

    • Amy March 2, 2009 at 8:54 PM #

      Dan, brilliant summary!

  3. SUSAN June 3, 2009 at 1:25 AM #

    To expand on the comments of pobept,
    02/12/09…….. Sarcastic and ignorant comments are totally unnecessary. Stereotyping college students and assuming all possess credit cards and max them out is absurd. Yes, those who chose to attend college were advised of interest rates. Future students were also advised the student loan debt would not be due until six months after graduation. Students were also given a choice, early 2008, to consolidate all aquired debt to date,at a lower interest rate. This offer came with a condition requiring repayment begin immediately. Programs such as FASFA and College Foundation consolidated student loan debt up until September, 2008. This was disclosed to me two monthis after I graduated, completed the required consolidation forms, mailed in on time and expected to receive a reasonable, manageable monthly payment. Not when I “signed on the bottom line”. Upon calling to make arrangements for a hardship, I was advised I make $5.28 too much to qualify. I am a single parent of two, work a full time job, and did so while attending college full time. I AM ALSO A TAX PAYER. I paid my taxes while I worked full time and attended college full time. I still pay taxes. I can only speak for myself, but I am not looking for any tax payer to “forgive” my student loan debt. Why would I, as a tax payer, want to screw myself out of more money? The governemnt seems to be doing that without my help! The goverment offered student loan assistance. Now the government wants to require, in my opinion, unreasonable requests for repayment. Most graduates would not have a problem repaying student loans if they were immediately hired making top salaries along with benefits and an unrealistic bonus. The “whining” may not be the result of being over burdened with debt. Maybe the “whining” results from not being able to FIND A JOB!! Considering student loan debt forgiveness is not an unheard of concept. Medical, teaching, and community service careers, to name a few, will conditionly waive student loan debt. Maybe other businesses and fortune 500 companies should think about offering conditional terms to forgive student loans. The economy can’t be stimulated if consumers only have money to pay toward interest accruing debt.

  4. Amy June 3, 2009 at 9:51 AM #

    Thank you, Susan! My friends and I were talking about our student loans the other night. We’re paying so much interest compounded on the student debt we doubt we’ll ever be able to pay the things off.

  5. diana d July 6, 2009 at 3:31 PM #

    If you have followed what I have written I strongly suggest that you very actively invest your time into this, I have MS I was out of work for a very long time , I had my wages garnished and then it stopped because of lay off I couldn’t make my payments, however I paid in $10,000.00 to a less than $9,000.00 loan in 1990 and now owe compounded interest to $17,300.88. G C Services contacted me and threatened garnishment again to recover. I explained I was disabled, They could give a rats butt, nor did Sallie Mae demanding repayment, so have monthly ACH for $141.00 to get at least out of default.. how ever the interest goes on and what will happen after the 9 payments oar over?? SSI is income and can be taken to pay it off. It is death that I can be released.. from it. “I think Sallie Mae is the other Mafia.” I am having a bumper sticker that states that.. So please let me know what you really think, I invite everyone ask, tell me.

    Di

    Excuse spelling–hand problems.

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