What is Giving Compass?
We connect donors to learning resources and ways to support community-led solutions. Learn more about us.
A new study published by public policy think tank the Levy Economics Institute finds that the cancellation of all student loan debt not only would yield benefits for young Americans, but would positively affect the economy overall.
The researchers found that, freed up from their student loan obligations, millennials would be able to afford to make other financial decisions that would help buoy the economy, like buying a home or starting a new business. Last October, the National Association of Realtors released a study reporting that student loan debt compelled millennials to delay home-buying by an average of seven years. Additionally, other forms of spending — cars, vacations, or, you know, avo toast — could help create jobs in other sectors.
But student loan cancellation could help alleviate other immaterial consequences of the debt crisis. A Gallup-Purdue poll from 2014 reveals that the acquisition of student loan debt affected the mental well-being of college graduates, negatively influencing their sense of purpose and their social lives. Other studies found that those with debt were more likely to experience depression and even develop physiological responses to stress, like higher blood pressure. Beyond the personal effects for millennials, consider this: An unhealthy workforce is not a productive one and does not bode well for the overall economy.
Read the full article about erasing student loan debt by Tasbeeh Herwees at GOOD Magazine.