Sarah

Sorry but I posted a similar idea today without knowledge of yours. I think this is a great idea - it would be an immediate stimulus to the economy as millions and millions of monies would be freed up for local community investments, etc...

I do not have a facebook account nor do I wish to create one - but I will certainly get involved on a grass roots level to help get this out there...

Great idea - Voting it up right now!

sounds great sarah. I'm all for it. 

I think the root of all solutions in this country lie in education. It is a shame that our country has completely dropped the ball when it comes to educating everyone. You can ultimately trace all problems in our society to lack of knowledge; crime, drugs and unwanted pregnancies are just some of the societal ills created by a fundamental lack of education. To that end, education needs to be a national priority, and one way to accomplish that is to forgive the one debt that is created in pursuit of broadening horizons.

It's a little painful to hear talk of bailouts for ill-conceived financial plans (from the macro scale of lending to the micro of borrowing) or pig-headed refusal on the part of automakers to make cars that consumers don't want when you're sitting (as I am) on 100K plus of student debt.
I am fortunate enough to make a good income, but the money that doesn't go to a modest car payment, low rent, food and insurance goes to student loan payments.  I don't save a dime and I don't have a dime to spend on things that might actually contribute to the upswing of the economy.  I service interest. 
If any portion of my debt were forgiven, I'd instantly be able to save (which would give me a pad against the not-unlikely possibility of personal bankruptcy, which doesn't help anyone), but I'd also be able to use my education to do more than service the debt it incurred - i.e. invest my own capital in ideas that provide jobs and inject cash into the marketplace.
What's the point of higher education if all it does is generate wage slaves?  How many people's full potential goes untapped because they lack the (minimal) financial muscle to convert the lessons of their education into business?
Do we live in a country in which my decision to go to grad school is less forgivable than the bad decisions behind the mortgage crisis or the looming death of the auto industry?  Should we not invest in individuals?
I would consider it revolutionary if student loan debt were forgiven, but if only the interest on that debt were forgiven it would be a Godsend! 

I think it is a really good idea.  I run a small business directly behind the school I owe $70,000 to.  Forgiving that debt would be the perfect stimulus.

A brilliant idea, and a quick and easy way to instantly stave off a massive recession.  

SERVICE PAYS:
We should work to unlock the chains of the aspirational lower and middle class graduates who have to choose their careers with their large student debt in mind.  If we free those graduates to choose their vocation without money as an issue we will see a resurgence of graduates committed to their communities, not to themselves.
A good idea with potential real-world implementation: 
"It's time to rethink college borrowing and repaying. We propose 'Service Pays,' a program that is as simple as it sounds: borrow money to go to college, work in public service a few years, and loans are forgiven."
Full articles:http://www.boston.com/news/education/higher/articles/2008/06/05/out_of_the_hole_of_college_debt/

http://philanthropy.com/news/updates/index.php?id=3005


Let's extend the College Opportunity and Affordability Act of 2007 to forgive all loans not just $2000.
You think we can't afford it?
"Cost is always a concern, particularly during this time of economic instability. But in the long run, investing in the next generation makes good financial sense. The GI Bill helped 2.2 million returning soldiers become engineers, scientists, entrepreneurs, and business leaders, fueling the economy and raising the standard of living. It cost $7 billion (about $240 billion in today's dollars), but for every dollar invested, nearly $5 were returned over 35 years in higher productivity and tax revenues. Service Pays makes the same investment in the future."
Our generation has to see that we need to reinvest ourselves into our local communities to make our country strong again.  Don't flee to NYC to get that six figure position.  So get your BA degree from Williams, pass up on working at CitiBank 80 hours a week to service your college loans and choose to work for the non-profit that provides essential services in your community.  Be a teacher in a high risk area, work for Americorps, volunteer to build local food networks (CSA), make sure all forms of the arts are accessible by the community as a whole, and get involved in local politics.

I would like to vote for this idea but I'm having a hard time using this page and figuring out how to do it.  I want to vote for this idea because my student loans are so substantial that I will be paying them for for at least 3 decades.  My students loan debt is higher than what many people pay for a home.  As a result of this burden, I fear that I will continue to financially struggle for the rest of my life because of my choice to become well-educated.  Ultimately, I fear that I would be able to afford to buy a home, have children, or have decent credit to be able to
do things such as buy a car -- or even to be able to be able to get a credit card so that I can rent a car!

Yes!  This is a great idea.  Education is a core component, and monetary debt in general needs to be absolved.  

Consider voting on this idea: to change monetary policy at a fundamental level: 

http://www.change.org/ideas/view/convert_to_debt-free_money

I would modify this a little to say, eliminate student loan interest and have the principle attached to salary futures so that a percentage of anything over a certain amount in gross income (say 100K) goes towards repayment. But you are correct, something must be done.

Hi, Sarah
  I had a few questions. How would it free up money if students don't have the money to repay the loans? The banks would have to write off the loans as bad debt. Either the lending institutions would then fold, losing whatever retirement savings, etc., had been loaned, or taxpayers would bail them out. The taxpayers bailing them out are you guys - with 10 trillion in national debt, this would be borrowed with interest from China or Japan. The danger in this debt is that national assets - farmland and ports - are being used to pay down the interest. Once we lose these, our future is sunk.
   I've been working on an alternative model for college. Instead of paying 10's of 1000's, students do a combination of internships, community service, research and teaching assistance, practical apprenticeships, travel, and mentoring. By structuring it so that levels of competency can be reached, a prospective employer can know what they're getting. Parents can credit their kids for the hours spent on a good cause. Instead of coming out with 70K in debts, they could come out with a 70K downpayment on a house or a green business.
   I know this doesn't help you who are mired in debt. But you're asking for your room to be comped while the Titanic is sinking. When we run out of food because 80% of our agricultural workforce goes back to Mexico, your debt may be the least of your worries.
   But in the meantime, you could join the underground economy I'm trying to bring above board in my idea, A Tax Structure to Reward Giving. If we started a local currency, you could default on your loans and still support yourself through trade, barter, and generating donations to global charities.
   I'm interested in hearing your response, also, to my idea if you have time. We need a way forward for everyone, and I'd welcome your thoughts.
     

I'm glad I saw this, since I was going to suggest it.
One thing I would want to add is to make it so that all debt regardless of if its with the Fed or with a bank for any schooling past, current, and future be paid off. With out any regulation on what the student can or can not learn. Because when we follow are own interest we do the things we love and create things faster.

I'm a believer that education should be something that's free and I wish it was more of a forum style discussion instead of all things written or fact. 

I guess it can't be free when colleges are paying football coaches 1 million a year.  Heck, the normal professor gets about 90,000 a year and these guys get 10 times that.  Then on top of it, it's coming out of your pockets whether it be cash or tax payer dollars.

Here is the current system that the Federal Direct Loan system has to forgive your loan:
http://studentaid.ed.gov/students/attachments/siteresources/LoanForgivenessMarch18.pdf

You have to make 120 payments while working for a "Public Service Job."  I think this needs to be scaled back to make 60 payments or 5 years rather than 120 payments or 10 years. 

Elizabeth Warren's article:

http://www.hlpronline.com/Vol1No1/warren.pdf

So who do you force at gunpoint to pay for your student loans?

Didn't you agree to pay back those student loans when you accepted them? If you thought it was too much money and that it would be an undue burden to pay it back, then why did you sign on the dotted line in the first place?

You made an agreement, and now you want to use the force of government to allow you to violate your signed contract without consequence?

You need to understand: Stealing is WRONG, whether you steal yourself, or you empower some government clown to steal on your behalf it is the same thing. Using government to steal is the reason our country is messed up, and you all want to expand on that program of institutional theft. Get a clue.

Why are you so affronted about socialized education?  

Most all of the Western Liberal Democracies in the world provide free University education.  Why don't we?  

Service Pays is an investment into the future of our country.

Public service is a noble and needed sector that will help develop the decaying foundations of our democracy.  Notably public participation in our government.  

The government we put into power who takes our money to distribute it to necessary expenditures.  There is no stealing involved here my friend.  I am of the opinion that education is essential to evolve and develop a strong country that is competitive in the world.  It strengthens civil society, public awareness, participation in government and industry by providing well trained individuals. 

What would you like to do with our hard earned money? 

Take another $34 billion + and give it to an industry whose failure to compete in the modern economic world has led them down the path of ruin.  

Maybe we should give more money to a banking, insurance and investment industry that collapsed our economy, charges interest on our currency when we have the right to print our own, and keeps the entire world enslaved.

I will pay my loans back, I will work as hard as I can to support my local community, and I will give back to a country who has fostered my development into a citizen of the world who thinks  justice and freedom are not sold in stores.

I am quite happy to use my skills as an attorney, duly admitted to practice before the Courts of the State of New York by the Supreme Court, Appellate Division 2d Judicial Department, in exchange for some relief on my student loans.  I'm also happy to serve as a manual laborer or in any other capacity that I can.

I strongly believe in broad student loan forgiveness in exchange for service.  I look forward to this policy proposal becoming one of the pillars of the Obama Administration.

I am unable to purchase a house or car because my credit score is so low due to unpaid student loans, I simply cannot afford the payments,  and yet I am expected to contribute to MY money to save the auto/housing business so that OTHER people can own them?  anyone else not see the irony?

Service Repayment would put all recent graduates to work in their areas of expertise and would lift the unconscionable debt load of the education needed for us to create a new future!

This is another bad idea.  If anything, we could use national award grants and scholorships to reward student accomplishments in innovation or for service.  Free rides are for jocks.   This idea is suitable for china not the us.

Can you please elaborate on the system you have suggested Gary Knopp?  Being fair and equitable should be a goal of a service program. 

Lobbying for loan forgiveness is a great start, and worth spending time and effort to legislate. That said, the powers that be have almost zero interest in such endeavors, as clearly evidenced over and over and over again by the criminal politicians, bankers and corporate elites. A far simpler plan is to simply stop paying these loans en masse along with all credit card debt and help grind these fascist machines to a halt. Credit is already evaporating for those who've played by the rules, so why continue to participate in a stacked game? The stewards of this debt have already demonstrated their lack of integrity and responsible leadership by gambling with derivatives with the assurance of a taxpayer bailout. We must always remember that no human being is obligated to follow unjust or immoral "laws" or crooked systems of finance. Did *you* get a $3 million bonus this year for committing economic terrorism? If not, I would seriously consider walking away from these obligations less you continue to support class warfare in its most brutal and ugly manifestation.

You can't just forgive student loans as a stimulus program. First of all, it's extremely unfair to those who don't have student loans, or not as much, or who paid them off, and so on. For example, I personally lived frugally after college and paid off my student loans and car loans way ahead of the payment schedule in order to avoid interest. If student loans were to now be forgiven, I'd basically be penalized indirectly through our national debt because I acted cautiously and responsibly. And it would mean that I would be rewarded if I instead borrowed as much as possible while accumulating savings in a bank.


And in terms of this being a stimulus (besides being unfair), paying off loans does little to stimulate demand in the economy. In addition, it is very poorly targeted anyway. Wealthy people can have plenty of student loan debt, while poorer people will often have none. A comparable and better stimulus would be just to give more rebate checks, allowing people with loans to put it towards paying them off if they wished to do so.

Without the heavy burden of loan debt service, graduates can be freed to spend many years serving the public good- even join the ranks of the Peace Corps or teach in inner-city schools.

To vote, (if you do not have a change.org account, click on the blue "number voted" button next to the "Forgive Student Loans" title at the top of the page.  You will have to create an account for change.org.  Once the account is created and verified, click on the button again.  Your vote will then be counted.

I have been struggling to complete my undergrad for six years, paying off portions of my loans as I go.  I am still in a tremendous amount of debt that severely limits my options when I graduate.  Student loan forgiveness would open up doors for me and allow me to continue my education beyond my undergraduate, as well as finally ensure my quality of life as an adult.

In response to Tim Martinez - wealthy people generally will not take unecessary loan debt, and have the capital to pay school costs up front.  Not everyone has an affordable local public insitution they can attend.  With the state of our economy and the competition in the job market, you cannot compare the experience of current graduates to yours.  You were able to work and pay off your loans already, which is excellent, but some loans (like mine for example), are so riddled with interest that they will not be paid off until I'm in my late 30s.  Unlike other loan services, the borrower doesn't have a choice in the matter - the school presents a lending package and you can either take it or leave it. When I finally graduate the work environment will not be the same as it was when I entered, so paying off my loans at the rate required is a daunting task.

I was just noticing that Sarah has left us to debate the viability of her plan and hasn't responded to a single post. I think there are ways that this plan could be fleshed out to be fair, but it needs more detail. First, I think counties should assess the Federal taxes we've paid, the Federal services we've received, and the Federal debt we've incurred over the last 8 years. Then, we should announce our intent to sue the Fed for fraud and grand larceny - no joke. We're not likely to win, but the intent gets the data into the public record and puts Obama on notice that We the People aren't co-signing the loans to bail out banks and industries unless we get something in return.
One of the things that we could get in return is county ownership of student loans. At that point, a program could be put in place where work-trades could be accepted instead of cash if the graduate has skills that serve the local community. It could be structured from 5 hrs/week for a long time - to leave time to make a living - up to 20 hrs/week for those who want to pay it sooner. But it would have to be up to the community as to whether they wanted to hire the graduate and at what rate, because it's real money and is coming out of our pockets to pay off the loans. As a taxpayer and parent, I don't believe in giving anyone something for nothing - not the banks, the auto industry, or my kids.

Not only should we forgive the student loans, we should send everyone who is capable of going to college free, irrespective of their ability to pay. This will reduce the number of people in the work force now (decreasing unemployment) and create a large number of highly skilled workers for the economy of the future.

Who then will pay? If those students who entered an agreement to pay back those student loans are relieved of their commitment, someone else must pay. And if someone else is forced to pay, how can that be justifiable? The premise and principle of the idea is just plain wrong. Another loop in the noose of socialism. Come on, wake up.

The essence of a succesful economy is education.  Currently in America, education has become so expensive that the great majority have major debt.  By the time I finish Physician Assistant school I will have almost 200,000 in debt myself.  All of this for a job to help people be healthy!  This will certainly affect my lifestyle and my ability to be a consumer.  To expand capitalism, we need free money to spend.  Please include a debt forgiveness program in your monetary plans for your presidency.

Thank you.

Great idea!  Making education a higher priority would help this country in every respect.  It's the opposite of trickle down; it's focusing on assisting this country's best and brightest and focusing on the future.

I would hope that this would cover any government aquired loans as well!!!

In this thread there are many points of view those advocating for loan forgiveness and those calling it stealing. First let me clarify a few points that are important. First, there are service oriented plans that allow for loan forgiveness for certain occupations suchs as lawyers, nursing, doctors, and educators (elem. and secondary ed) yet for someone like myself who works as a scientist conducting basic scientific research there are virtually no service oriented programs. The only one that comes close is the NIH's repayment program which is great, if you can get into it, but you have to have a PhD or MD to qualify. Many of these programs have stipulations for qualification that most people don't meet. Why should certain occupations have the opportunity to get forgiveness while others don't?
Furthermore a broadbased approach to loan forgiveness is not stealing. Taking huge risks, giving yourself huge bonuses and then asking for a bailout, that is stealing. Walking away from a company you ran into the ground with a $10Mil bonus is stealing. I think that most people here are wanting the same opportunity to have their loans forgiven that others have, whether this is service based or not. Those with advanced degrees in certain occupations have the opportunity so why can't someone with a BA in arts get that same type of opportunity? I chose to go back to get my PhD in hopes of making a decent enough salary to cover my loans and perhaps work for the NIH to see if I can get them to help cover some of my loans. I have my MS in Biology and work hard, but my salary isn't enough and there are no programs for me. I'm not wanting a handout nor do I want to steal, but I would love to be able to work in my field and get the opportunity to have my loans forgiven just like drs, nurses, teachers and lawyers. It's all about being fair to all gradates not just certain ones.

This is an awesome idea!

I'm involved with Students for a Democratic Society, a mass base student organization that has a national campaign for universal education. 

Check us out at newsds.org and start organizing a chapter on your campus/highschool today!

Our main demands are:
Universal Education at all Levels - All levels of education benefit all of society, socialize the costs as well as those benefits
Immediate and Total Student Debt Cancelation - Bailout students and not the banks that prey on us.
Student Run Education - Our education, our decisions
Liberatory Education - Our education should build a better world and not perpetuate systems of oppression

This is an awesome idea!

I'm involved with Students for a Democratic Society, a mass base student organization that has a national campaign for universal education. 

Check us out at newsds.org and start organizing a chapter on your campus/highschool today!

Our main demands are:
Universal Education at all Levels - All levels of education benefit all of society, socialize the costs as well as those benefits
Immediate and Total Student Debt Cancelation - Bailout students and not the banks that prey on us.
Student Run Education - Our education, our decisions
Liberatory Education - Our education should build a better world and not perpetuate systems of oppression

While we're at it, why not forgive small bus. loans? Small businesses employ most of the people in this country. Forgiving their loans would allow them to give raises to their employees and expand and borrow more money they wouldn't pay back. And what about farm loans, lets forgive them also. After all, farmers produce food, and we all eat, so forgiving their loans would make food cheaper so we would all save.
     I think everybody here that agrees with forgiving any loan needs to go back to econ 101, and please take your congressmen and senators with you.
     There is no pot of gold sitting out there somewhere just waiting to pay everbody's debt.

What do you need a college for? Why shouldn't adult simply pay for you to have a four-year sleepover party with your friends, growing industrial hemp and smoking legalized marijuana (ideas # 2 & 3 for saving the economy)? If you have free student-run education, all you need the adults for are cleaning up the dorms, maintaining the lawns you play frisbee on, and cooking for you. Oh yeah, they'll have to grow and process the food, and make your clothes and stuff, because your college education isn't going to teach you how to farm and sew and manufacture. You'll be learning how to not perpetuate oppression.

what about those of us that didn't take a loan...or just paid it off while living on Ramen noodles for 5 years???  Why should you get an advantage over me? What about my future student loan bills when I go back for my masters? Should I get screwed, so you don't have to learn about hard work and sacrifice?

This can't be done fairly. We'll have to look somewhere else for handouts.

How do YOU know that people weren't just going to school to rip off the government (as plenty of them did during the VietNam War, etc.)??? Daddy Longlegs just above me is 100% correct.

However,  he offered no solution for these students to pay off their deliquency, but here's a great idea-- THEY should be "offered" the "opportunity" to join the AmeriCorps (NOT the military) so that they can pay off their loans with a form of community service to the USA, which loaned them the money in the first place. It may seem like "slavery", but remember, even working for a boss is "wage slavery", after all,-- the term is just a matter of semantics.

   I think this is a novice idea that was not thought through, the way I see it is I wanted to further my education to start my own business, I knew I had to get a loan, looking at the interest rates almost made me faint but I agreed and know this is a debt I OWE due to my agreement.This is not fair because there are some that more money than I and there are some who recieved less. What about the companies that made the loan, they automaticlly eat the cost of all those loans, and the interest and this will eventually hurt us all, they will simply find a way to increase the intrest on future loans and ask for more money from the tax payer.Haven't we given them enough. You want to hear a real idea,take those billions of dollars and give an equal share to every American over 18, then you tax it,25 % goes back to the government, then we all use the left over $250,000 or so to pay off our cars(auto industry solved), pay of our debt(loan & banks are good) and then we buy a new home(real estate ok) and then we live it up with rest to help out the rest of the economy, NOW THATS A TRUE BAIL-OUT. 

We, as the future of America, are suppossed to be carrying this nation... How are we to do this when we struggle everyday with making all our payments, including the very HIGH student loans.  I think it's very unfortunate in such a great country that we have to continue to go to school and assume even more debt to be able to move forward.  I Agree to help the economy and get it going again then it would be a great thing if they relieved us of our debt for gaining knowledge to make this country stronger!  Thanks so much for starting this Sarah!!!

Pardon,
Do I have a right to a free education?
It would appear that it is my right to a free education in the U.S.A.
How is it possible, that anyone in America has a right to a free education?
Someone must pay. Nothing can come from nothing.
Is it possible that I have more of a right to free education than another, in America?
If I have a right to free education, but someone else must pay, what of his right?
Why has he no right to his property?
Perhaps a right is not, cannot be a right, if it is at the expense of someone else?
All are created equal, all have the right to pursue an education in America.
No one has a right to someone else's property in the land of the free. Do they? Lest some are more free than another. No one has a right to a free education in America.

I'm not sure how I feel about this idea.  As with most things, I think that this sort of extreme is probably not a bad idea.  I would rather see things like grant programs for service industry professions that are administered fairly and in a timely manner.

As a student in Special Education I find it maddening that each school gets to pick and choose how/when/why to administer Federal funding.  For example, the 4-year university I'm attending for the first time this semester "isn't sure" if the TEACH grant for education students is going to be available for Spring or not.  So my choices are:  1. take out student loans I have to pay back (on a salary in the 30k range in my area, teaching is NOT a lucrative business) and kick myself IF the grant comes through.  2. Decline the student loans, try to cover the tuition and books that aren't covered by the Pell grant, and hope to God that the TEACH grant is actually put into action this semester.  Talk about being between a rock and a hard place.  I have 4 kids and a husband who works as a Chemist, I don't HAVE the money to cover it, but I don't want to run up my debt either.  I would LOVE to see the government step in and enforce even some basic guidelines like "you have to offer this and your payments must be on track for the start of the spring '09 semester". 

Last semester my student loans were 2 whole months late.  By that time I was behind on the mortgage and car, among other things, and it was too little, too late.  Unlike my younger college classmates I don't have the option of living at home and eating food my parents bought.  It's work full time at minimum wage or go back to school.  School is obviously the better choice, but it's not easy.

I don't need my debt repaid for me, I just need college to cost a reasonable amount, promised assistance to show up on time and in correct amounts, and special programs that encourage people to go into fields that maybe aren't as lucrative but are certainly necessary.

This plan makes no SENSE!  How can you just forgive all the debts and get away with it?  Isn't that on par with enslaving the schools, saying you HAVE to teach me for free?  Schools and their employees need that money to operate!

You people are thinking with EMOTION rather than LOGIC and REASON!  Sure, it would be great to go to school for free!  But did you ever stop to think where the money comes from then?  Printing money out of thin air is what got this country in such a horrible state in the first place!  THINK ABOUT IT!

Sorry but I don't want to pay for your student loans.
I've already paid for my own... by WORKING and saving.

Tereza comments above that Sarah has not made a single comment.

Its true--i have been enjoying watching the debate and sharing the idea with folks and am eager to have the community shape the idae.  But, fair point and  I'll throw my 2 cents now.  I

We are in a very unusual moment, where we can and must rethink everything---how and why we work, as well as how we value things.  Everything is effectively up for grabs;  we can reevaluate what is fair and what builds opportunity for us as a nation and us as individuals.

I by no means claim to be an expert on this topic, but thought it was an idea worth consideration that could help the middle and lower glasses.    I am keen to learn more and hope we can change the world.

In this economic situation, no matter how eager, smart or talented people may be, there may be very few jobs.   Without a culture of savings, I wonder how people will manage to pay their rent, let alone their student loans.

It is my understanding that pending money will help prevent inflation;  for me, I would have $650 more dollars in my pocket every month. This is not insignificant.

I believe that education should be a right, rather than a privilege.  If I could design the system, it would look more like Europe, where everyone can rely on a healthcare system to care for them and the opportunity to be educated.   Instead of graduating with educational mortgages, I think we should be able to start with a clean slate--and we should encourage our brightest to pursue progress.  The economics of education require many of us to take jobs that we would not in order to pay our debts.  

Personally, I would not limit forgiveness to those who pursue public interest work;  the cost of education exceeds inflation and there are not enough opportunities for this to be possible.  Plus, in some fields, this may not even be a possiblity or practically possible for some families.

By no means do I believe that people should get something for nothing or live irresponsibly.  I recognize the world is not fair; but I can't help but seek it to be so.  I dont think only our wealthiest folks should get to go to Harvard or be doctors or lawyers or even artists; nor do i think we should only bail out the rich bankers.  We have created a giant mess! 

 Graduating with $200,000 of student loan debt is a significant barrier to education-- I fear the cost of education will soon thwart the United States' progress. 

Since I believe an educated public is a public good, I think we should collectively support education as much as possible.

I am eager to have our community figure out the economics of this idea;  both in terms of what it costs the government in revenue and what it will mean to the lower and middle classes.  Please let me know if you'd like to help!

I look forward to and appreaciate your thoughts and participation:)

Thank you!

Sarah, thank you for entering the debate about the viability of your idea. I think that it would help if you clarified what you meant by "government." Personally, as a taxpayer, I don't accept responsibility for paying the bank bail-outs. I've posted ways I think we can take back local control of our taxes. Under your system, we continue to fund and be controlled by a central government - but we get a free education, so it's okay. You've pegged the cost of this education at 200K, so I'll use that number. Should each taxpayer be responsible for paying 200K in extra taxes over their lifetime for a student's college education? What's the difference between that and paying off your own student loans? At that point, whether or not I think that college is beneficial for my own kids, I'll be paying for everyone else's. Like the public schools, which my kids attend, the gov't will then be dictating the curriculum. Goodbye, arts & social sciences, hello, math & science. Would you like to major in the defense industry or corporate plunder?
I don't know if you heard that unemployment benefits are about to bankrupt some states - who will have to borrow from the Fed. Is it a right to be supported as a dependent until you're 22? That's one-third of a life pre-retirement.
Essentially, Sarah, your plan is for absolving loans and free college. This would be a bail-out for the university system, which stands to fail and is already reeking of desperation. BA's and MA's are already checking my groceries at the store - why do we need more in the workforce?
There have been many good objections raised here, and I suggested an idea way back on this thread for how it could be made viable. Please answer these, Sarah: Where will the money come from - additional income tax or foreign debt? Second, how can it be made fair to those who paid off their debts or paid for their kids' college, or don't want college for their kids? Third, if I as a taxpayer assume your loan, along with my own loans, what do I get in return? 

Hi Tereza,

To be clear: i posted this idea: Student Loan Forgiveness, with the aim to foster debate, build support and develop the idea amongst the community.  If we win, the idea is presented to the Obama adminstration, who will hopefully consider it.

 By no means do I profess to be an expert or a leader in econonmics or education, but I am certainly eager to work with others who are!  I'd like this project to be collaborative and seek to work with others who know more to build this into a proposal. 

I had already started a facebook group to encourage others to participate, to think through the concept, do research, and develop the idea further, and have been working with a few people.   I'll keep you posted as things develop.

Thanks for your questions (and everyones!);  as I have said, I am not an expert, but we will certainly be considering all posted comments and ideas as we develop our plan.

My sense is that we have different perspectives on this issue, but I'll  quickly do my best to give you my thoughts.

1.  On where will the money come from:   this is a very complicated question, because so much of the money that is owed, is owed to the banks that the taxpayers are bailing out.  It will require more research and we are working on it.  Any ideas?

2.  On fairness:  it is already not fair that we are bailing out Wall Street.  I believe that a right to an education is more fair than our current model, which we have no choice but to reconsider.

3.  It is a benefit to the United States to have an educated public.

We live in complicated times.   We are in a moment where we have no choice but to rethink our entire system.  We are forgiving the banks, bailing out the auto industry, and the insurance industry.   I am eager to encourage the Obama administration to consider granting relief to people overburdened by educational debt.  

I look forward to contemplating your questions and others as we continue to develop this idea. We are eager to build support for the idea and to work with experts and legislators to examine the core notion of Forgiving Loans, what would mean for the economy, for the middle class, and inflation.

 Forgiving Student Loans is only one way to relieve the pressure on the middle and lower classes. I hope to work with anyone that supports this core principle to develop research and a proposal.  Please contact me on Facebook if you are interested.

Thanks,
Sarah