Showing posts with label student loans. Show all posts
Showing posts with label student loans. Show all posts

Student Loan Debt- Should It Be Forgiven?

Monday, March 9, 2009

Last week I followed a Tweet from GeorgeGSmithJr to an article on The Huffington Post. The topic is forgiving student loan debt to help stimulate the economy. An attorney from New York has started a petition on Facebook to cancel loans so that those monies can be injected back into the economy.

The comments on the article are interesting and range from (and I'm paraphrasing) "Why not help those who are struggling?" and "If bankers can buy $40,000 chairs then why not?" to "No way! You willingly took out the loans, they should be paid back in full."

George and I had a
conversation where I said that I didn't want to be seen as a deadbeat. The loans are my responsibility but the monthly payment amount is one we just can't swing right now.

I spoke with the Department of Education about my loans just last week. They've advised me on the best course of action given our situation. I'll be keeping the loans in forbearance status but making a payment we can afford which will go more towards the principal than the interest.

I think the petition has some merit and is worth further investigation. I don't think loans need to be entirely forgiven but drastically reducing the interest rates, forgiving the interest that has accrued to date or allowing people to volunteer to work off the debt are ideas I think the government should at least look into.

The idea of fairness and whether this type of plan would actually help stimulate the economy is a slippery slope for sure. But so many people I know bought into the idea that we needed to go to college or else we'd be failures, and we went to college thinking we'd definitely be able to pay back the loans easily because a degree automatically guarantees a good job. I can't speak for anyone else but the monthly payment the bank wants would take a huge chunk of our monthly expenses.

Are you weighed down by student loan debt? Have you found a payment option that works well for you? What do think of the petition?

(photo from Google Images)
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