Surname 1 Name Instructor Course Date Forgiving Students’ Loan Students’ debts in the United States are a sort of financial support that has to be paid back, in contrary to other kind of financial support like as scholarships and releases (Bryfonski, 70). Students’ debts play a huge role in U.S. higher studies. Around 20 million Americans join college every year. Out of that 20 million, nearly 20 million or 60% take debt annually to cover costs. In Europe, for instance, advance education is in addition subsidized for learners and financially aided by government. In fraction of Asia and Latin America maximum after secondary education is still private with small financial support by the governments. Whatsoever, in the U.S. many of college is financially aided by learners and their relatives with government bodies being financially aided in fraction by state and localized taxation, and combined private with public bodies through extra rewards from social welfare and students. The interest rate currently is 3.4% per annum, wherein debates are in to increase it to 6.8% p.a, which seems to be the exact double of the current interest rates (Szmigin et al, 602). Every week, new petitions popups emerge urging the government to forgive all students debts. The argument is that forgiveness of students loans will stimulate job growth and overall economy growth and will lead more people to get an education. But, it will never be an investment for collective growth as a country (Field, 2007). The theory is simple, if we provide one time bailout of students loan debts, it would stimulate and uplift the sluggish economy. After all, college graduates are the people, who are required by the society to do things like improve business, purchase homes, and cars, make discoveries , invent new things, initiate new ideas, have families, have kids and people burdened with loans do not likely make such investment of take such initiatives. Drawing reference from Kelly’s, Forgiving Loans of Those in Public Service Grows Popular, but Programs Are Unproven, it can be said that unburdening them will improve the housing market commodity market, stock market and would eventually result in overall economic growth. With the acceptance of this proposal by the President, millions of people in America, would all of a sudden have hundreds, in some cases, thousands of dollars in their pockets to invest in various industries and contribute to the overall improvement of economy (Field, 2007). Education loans have become the latest financial crisis in USA and if absolutely nothing is done, then the entire economy will eventually become slugging, as it happened earlier. Those who are burdened with student loan debts, do not even think of making any investments etc., while the economy desperately needs people to indulge into activities which would help us pull ourselves out of the giant hole created thus the reason for unburdening students’ loan (students loan, 1990). This particula ...

1. Surname 1
Name
Instructor
Course
Date
Forgiving Students’ Loan
Students’ debts in the United States are a sort of financial
support that has to be paid back, in contrary to other kind of
financial support like as scholarships and releases (Bryfonski,
70). Students’ debts play a huge role in U.S. higher studies.
Around 20 million Americans join college every year. Out of
that 20 million, nearly 20 million or 60% take debt annually to
cover costs. In Europe, for instance, advance education is in
addition subsidized for learners and financially aided by
government. In fraction of Asia and Latin America maximum
after secondary education is still private with small financial
support by the governments. Whatsoever, in the U.S. many of
college is financially aided by learners and their relatives with
government bodies being financially aided in fraction by state
and localized taxation, and combined private with public bodies
through extra rewards from social welfare and students. The
interest rate currently is 3.4% per annum, wherein debates are
in to increase it to 6.8% p.a, which seems to be the exact double
of the current interest rates (Szmigin et al, 602).
Every week, new petitions popups emerge urging the
government to forgive all students debts. The argument is that
forgiveness of students loans will stimulate job growth and
overall economy growth and will lead more people to get an

2. education. But, it will never be an investment for collective
growth as a country (Field, 2007). The theory is simple, if we
provide one time bailout of students loan debts, it would
stimulate and uplift the sluggish economy. After all, college
graduates are the people, who are required by the society to do
things like improve business, purchase homes, and cars, make
discoveries , invent new things, initiate new ideas, have
families, have kids and people burdened with loans do not likely
make such investment of take such initiatives.
Drawing reference from Kelly’s, Forgiving Loans of Those in
Public Service Grows Popular, but Programs Are Unproven, it
can be said that unburdening them will improve the housing
market commodity market, stock market and would eventually
result in overall economic growth. With the acceptance of this
proposal by the President, millions of people in America, would
all of a sudden have hundreds, in some cases, thousands of
dollars in their pockets to invest in various industries and
contribute to the overall improvement of economy (Field, 2007).
Education loans have become the latest financial crisis in USA
and if absolutely nothing is done, then the entire economy will
eventually become slugging, as it happened earlier. Those who
are burdened with student loan debts, do not even think of
making any investments etc., while the economy desperately
needs people to indulge into activities which would help us pull
ourselves out of the giant hole created thus the reason for
unburdening students’ loan (students loan, 1990). This
particular reasoning may sound very expensive but the same
was the situation with the banks and auto bailouts and the
thinking goes as bankers and auto maker like “fat cats” get a
forgiveness, why not students?
A better approach to this problem, however, would be to
identify those who really need wave out and those who don’t by
the loan providers. But this task is actually very difficult. There
are people, who can afford to pay debts, pay off their student
loan. There are some borrowers who actually are not capable

3. and need a wave out immediately. But there are many who will
have to give up a part of their income to repay loan. So if the
forgiveness of student loan is available everyone would go for it
irrespective of whether they actually need it or not.
Forgiving educational loans will lead to more people to get an
education. If students loan have a policy of forgiveness attached
with them, it would encourage many more students to opt for
higher studies with student loans. They would have this
assurance that we are not able to pay back their loans,
government would forgive their loans. And they would be able
to make investments off their incomes and therefore
contributing to the overall economic growth of the country as a
whole (Zhang, 2001).
But we should also understand that forgiving student loans will
in no way be an investment for enhancement of collective future
of a country. We can understand this from two major aspects
First is the distribution reason
If we are going to give money in the form of forgiveness of
student loan, why would we ever give it to college students
which can afford to pay back and are good in studies? We would
rather give this money to the high school dropouts, who cannot
afford to study further, so that these students can complete their
studies, or study further, get jobs, make investments in various
industries and contribute to the overall growth and uplift the US
economy.
It is injustice to discount student debts on the shoulders of
waitresses and site laborer and close to three quarters of
Americans who failed to graduate college. Rise in federal
subsidies or learner debt bailouts transform the burden of
money for college by the student- the individual directly taking
advantage from the college- to the large number of Americans
who failed to graduate from college.

4. If those on forgiveness of loans were to get their way,
Americans would be compelled into more loan burden, fail to
generate last meet and move to productive and generous lives
below the load of student debt. In absence of subsidized federal
debt and release that vary on the long right look to weaken,
students would slide into the hands of private creditors, who
endorse to be far more breathe losing. Conservatives
disconnected, on the other side that the consistent effort of
allowing loan discounting leads to non-caring students to select
degrees in areas that permit no potential of repayment of loan.
Macro-economic Reasons
With this terminology we are looking forward to getting lot of
economical bang on for the amount of money forgiven in
regards to the student loan, if we give extra dollars to the
people who are likely to invest the same in a more concrete way
for the overall economic growth. Now imagine, what would
happen, if we forgive 50,000 dollars in loans, how much of it is
to be spent in next months of years, I guess a couple of cents,
and the rest would go to bank. On the other hand if we give
1000 dollars to each of 50 poor people, each penny would be
immediate spent resulting in a better stimulation towards
overall economic growth. Moreover college graduates are not
considered that liquid, that means most of them could spend
more if they want to, they can get access to credit card and car
loans easily, but there are lots of others who do not have easy
access to the same.
Conclusion
Forgiveness to Student loan is actually not a fair idea. The
failure of our government learning institutions is the absence of
basic economic understanding of various students. If you are
intelligent student who is keen to join technical or nursing, but

5. can’t buy it, welcoming scholarships and rewards (Schlachter et
al, 55). But, if you are keen to achieve higher degree with no
strategy on the sort of career you decide and no thought of
repayment of assured loan then no, you failed to take the loan.
Works Cited
Bryfonski, Dedria. Student Loans. Farmington Hills, MI: Green
haven Press, 2012. Pp. 67-89.
Print.
Student Loans. Wellington, N.Z.: Inland Revenue, 1990. Print.
Schlachter, Gail A, and R D. Weber. Rsp Funding for Nursing
Students and Nurses 1998-2000.
El Dorado Hills, CA: Reference Service Press, 1998. Pp. 56-63.
Print.
Field, Kelly. "Forgiving Loans of Those in Public Service
Grows Popular, but Programs Are
Unproven." Chronicle of Higher Education. 54.12 (2007). Print.
Szmigin, Isabelle, and Deirdre O'Loughlin. "Students and the
Consumer Credit Market: Towards
a Social Policy Agenda." Social Policy & Administration. 44.5
(2010): 598-619. Print.
Zhang, Huijie. "Strengthening the Financial Aid System to Help
Poor Students at Higher
Education Institutions." Chinese Education & Society. 34.4
(2001): 54-62. Print.