Americans owe about $ 1.7 trillion in student loan debt. By perspective, this is about double the budget for the United States Department of Defense and about 22 times the budget for our country’s education programs.
RELATED: President Trump proposes to end student loan forgiveness program for the fourth time
However, forgiveness of mass student loan is the platform candidates are on today as they try to grab millennial grades.
But is it realistic? ABC11 asked expert economist Dr. Mike Walden.
“It’s not that we can’t do it. It’s ‘do we want to do it?'” Said Walden. “And then what message does he send? If you get into trouble, the government will save you.”
In other words, is it ethical? Vermont Senator Bernie Sander’s plan would tax Wall Street, while Massachusetts Senator Elizabeth Warren would tax the wealthy.
“We want to help people if they do things the right way, they will do pretty well economically over time. We want to help them unlike those people who won’t go to college and maybe have a hard time,” said Walden.
Studies have also found that mass debt cancellation could widen the wealth gap between black and white families while somehow slipping into a silver coating.
“So I think if we were to do it. It would accelerate the economy slightly, but once again the biggest problem is equity,” said Walden.
And for this, the answer may lie in education reform.
“What can we do to make college more efficient?”
President Trump has proposed several education reform programs. In particular a recent signed bill that would finance free education for some commercial programs.
Former Vice President Joe Biden also hopes to offer free university classes for two years.
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