Social IssuesNOV 18, 2020

Attorney Explains Why Student Debt Cancellation Might Be Good For The Economy, Goes Viral On Twitter

Today, in the US, college graduates earn roughly 80% more than people with just a high school diploma. This means that college is more important than ever in order to secure financial stability in the future. However, college is also more expensive than it was ever before—thanks to that, some 44 million Americans collectively hold more than $1.6 trillion in student debt. The situation is described among experts as a "crisis," and it's hard to disagree with them. On top of the debt crisis came coronavirus together with economic struggles and between mid-March and June, according to CNBC, over 42.6 million Americans filed for unemployment.

"Pull yourself up by your bootstraps," some may suggest, but sadly, it's not always as easy as it seems. During the recession of 2008, many went back to school to earn new skills, but since then, the cost of a four-year college degree increased by 25%. Therefore, there are experts and researchers who are saying that if student debt gets written off, everyone can benefit from it.

Bharat Ramamurti, a former top economic adviser of Senator Elizabeth Warren during her presidential campaign, recently went viral on Twitter for making a case for broad student loan debt cancellation via executive order. Scroll down below to read the Twitter thread and tell us what you think in the comment section!

More info: Twitter

Around 44 million Americans collectively hold more than $1.6 trillion in student debt

Image credits: Aaron Hall

The average cost of tuition, fees, room, and board during the last school year was $21,950 for in-state students at public universities. Out-of-state students pay $38,330, while the cost at private non-profit universities is a whopping $49,870. According to an estimate by The College Board, today, college graduates leave school with an average debt of $29,000.