The total amount of student college loans is approximately 1 trillion dollars.
I propose that all those educational loans be forgiven and erased. We erase loans of other nation, so why not student loans of our citizens.
I propose this option as a way to invest in our nation and accelerate economic growth.
Lets for a moment imagine that all current student loan debt were to be repaid to the government and the banks. What is the government or banks going to do with those funds? The government has yet to find a viable formula to stimulate economic growth. As for the banks, they received public funds to rescue them with about $750 billion dollars from public funds. How has the nation benefited? Are we better off because we still have the major banks operating?
By erasing all college loans, we are now diverting that money from going into bank deposit safes and sitting there, over to individuals who can start their lives, businesses, purchase homes and invest the funds in their own neighborhoods.
It's understood that the true benefit of money is to have money constantly circulating. It adds to the tax revenue base. Thus, forgiving the loans means that a trillion dollars is now in hands of citizens and serving as economic stimulus throughout local neighborhoods.
Banks may argue that they are better suited to manage and distribute public and private funds in order to stimulate economic growth. However, if it was not for local business activity and its citizens spending locally there would be no funds for banks to reinvest.
Erasing old loans means that that parents have funds to send their children to college and expand our educated work force.
Let's invest money in our nation's growth and prosperity instead of seeing the bank increase their own private savings accounts.
For clarification, all my college loans were paid off many years ago.