Addressing the student loan debt has taken on even greater urgency since the advent of the COVID crisis. Several stimulus proposals call for the cancelation of all or up to $50,000 of student loan debt, but would such relief help or hurt the economy?
Mark Goldwein, Senior Vice President and Senior Policy Director for the Committee for a Responsible Federal Budget (CRFB) stops by Clark Hill’s Credit Eco to Go to discuss his latest article “Canceling Student Loan Debt is Poor Economic Stimulus”. Mark acknowledges that while getting rid of debt can be helpful for debt holders, it is not the appropriate vehicle for economic stimulus. For one it does not change people’s cash flow very much and research shows that for every $1 dollar of student loan forgiveness only $.23 cents is returned to the economy.
Mark is a proponent of direct economic stimulus and offers some suggested alternatives to help student loan borrowers both in the short and long term.
DISCLAIMER – No information contained in this Podcast or on this Website shall constitute financial, investment, legal and/or other professional advice and that no professional relationship of any kind is created between you and podcast host, the guests or Clark Hill PLC. You are urged to speak with your financial, investment, or legal advisors before making any investment or legal decisions.
Funk Game Loop by Kevin MacLeodLink: https://incompetech.filmmusic.io/song/3787-funk-game-loopLicense: http://creativecommons.org/licenses/by/4.0/