Federal Student Loan Forgiveness for All

Federal Student Loan Forgiveness for All

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The US is in crisis due to the Coronavirus (COVID-19) pandemic. The economic impact is already being felt and could worsen before it gets better. It is disrupting businesses, big and small, shutting them down and negatively impacting millions of Americans’ abilities to make a living. Many may be out of work for weeks receiving less pay or no pay at all for an uncertain number of weeks. With schools shutting down, many household expenses are likely to increase with children being home all day. Not to mention the increased inherent health risk also poses additional economic risks, as those who get sick and are hospitalized can be left with large medical bills and even those who are just quarantined may not have paid sick leave. Nearly 70% of Americans don’t have even $1000 for emergencies according to GOBankingRates’ 2019 savings survey, and this is clearly an emergency!

We are seeing what is happening with the financial markets. There is a growing risk of a recession and our government clearly knows it. The feds have already taken actions, including injecting about $1.5 trillion into the market to try to keep it from collapsing and slashing interest rates to nearly zero. Our country is in financial crisis. Moreover, it will likely just get worse. Supply chains that are fundamental for business operations have been disrupted. For many Americans having less income coming in, that means they will have to forego spending on things and activities that aren’t a necessity. This negatively affects businesses and the economy as well.

So how do we get pass this?

The government has already taken a few steps, but more is needed! Student loan debt is the second largest form of debt in the Unites States behind mortgage debt. According to a report from December 2018 by MeasureOne, about 92% of student loans are owned by the US Department of Education. This encompasses 43 million borrowers with outstanding federal student loan debt of roughly $1.4 trillion dollars. Many are already defaulting on payments and likely many more soon will, as they have no other choice in these trying times.

At this critical time, in order to really counter the risks of an economic depression and the impact of this virus and help boost the economy, we need to urge the powers at be to cancel all federal student loan debt. There has been pushes for it in the past, but right now this is a critical time, and we have seen with the amount spent in the market to prevent a collapse, our government can in fact do it. This can help millions, individuals and businesses alike, and subsequently help stimulate our economy again in the coming months. It can free up capital to help Americans catch up on paying bills, maintain current businesses, invest, start new businesses, and/or even just build up their savings for emergencies.

The Secretary of Education and US Department of Education have the power to cancel all US federal student loan debt itself without any action of Congress. Stand with me and urge the Secretary of Education and US Dept of Education to cancel all federal student loan debt and give our economy a boost that will truly help and positively affect millions of Americans!