Now Is the Time to Cancel Student Debt
A coronavirus response that includes canceling student loan debt will allow borrowers to purchase the necessities their families depend on: food on their table, a roof over their head, and critical health care. It will eliminate the worry many borrowers will face when they send their last paycheck to the government, instead of using it to keep their families secure.
A broader student debt cancellation plan will ensure that the entire economy remains functional, not just select industries impacted by travel bans and a slump in retail spending. Consumer advocates at the nonprofit Americans for Financial Reform, say, “Cancelling student debt would be a powerful tool to mitigate the impact of the coronavirus crisis on individuals, families, communities and the broader economy.”
The group says that canceling student debt would provide a short-term stimulus to the economy during the most urgent time. They point to a report by Brandeis University that shows student debt cancellation would free up hundreds of dollars each month. Americans freed from student loan debt would use that money for everyday spending and to pay other bills.