One of the largest barriers facing the stimulus bill is something near and dear to the hearts of current and former college students-student loans. I could write a book outlining the multiple problems inherent in the student loan market. But that is for another time.
Let us talk forbearance and forgiveness. Republicans tout the former with deferrals lasting as long as 6 months with little documentation needed from borrowers apparently. Indeed, the White House essentially ordered a 2 month deferral and also called off the collection dogs.
Democrats are proposing a wise range of full fledged debt forgiveness initiatives ranging from $10,000 to $30,000 in most cases with some more radical plans calling for wiping out debt altogether.
Things could get interesting for ex-students either way.
Interesting. This is something I haven't given a lot of thought to. Debt forgiveness could change the economy vastly.
The Coronavirus has definitely caused so much change in the last month. For college students, including myself, this virus has come to shift our weekly routines. Although, I am a commuter, online classes are quite difficult to keep up with. Apart from the classes turning to online classes, many students will be or are affected economically. It's scary because so many jobs have been shut down. This stimulus bill could be beneficial in the moment but what effect will it have on the future? I don't know where I stand in regards to this bill.
I agree with President Trump's decision to pause student loan payments. However, I do not agree with completely forgiving the loan all together. I don't think forgiving the loans all together will help our economy in the long run but for the current situation, I think it is the right thing to do by pausing payments. It is similar to rent being due in the beginning of the month. Many citizens are being laid off their jobs, thus not being able to pay for rent but the government was proactive by suspending evictions. This allows the renters to get back on their feet and when this is all over, they will be expected to pay rent again.
This will would be a very impactful bill for many people and there are a lot of different opinions of what the stimulus bill entails. We should all also realize that in modern history nothing of this magnitude has every happened to the entire world. The coronavirus is making impacts that we have never had to deal with before, so it is difficult to fully understand our decisions and make the best decision for our country. The idea of fully forgiving college debt would bring advantages to the students and a disadvantage to the college or corporation that is collecting the loan money. Knowing the economic impacts of many decisions for this time is difficult to know.
It is true, the Corona Virus is not helping anyone at all. Especially student who have debt. They are working to pay off the debt, now they cannot because everything is shut down. So that hurts the economic system and also hurts the school, and also the students that are paying because not only do they have their school to pay off they also have house bills, phone bills that need to get paid. So if the government thinks that this Corona Virus is helping anyone, it is only helping Mother Nature. Because the humans are inside and not destroying Mother Nature, so that is a plus.