Politically there has been a lot of debate about loan forgiveness. It is well known that America is being crushed by debt, but no one seems to have a solution for the problem. Is “forgiving” the loans and making them disappear the answer we have been looking for?
On the surface it may seem simple, but the process of loan forgiveness is a double-edged sword.
How It Helps
The matter at hand specifically is student loan debt forgiveness. Proponents of this measure believe that with less debt weighing them down, more Americans will have the ability to spend more. Spending more would of course reinvigorate the US economy.
More spending leads to more jobs, which in turns leads to more spending.
But will loan forgiveness really move us in the right direction? Can it?
How it Hurts
It’s easy to take an us-versus-them mindset on this issue. Obviously if we simply remove the loan debt for certain people it will help them.
The debt isn’t just erased. That debt is money owed to a lender or a business. By “forgiving” the debt, it is literally taking money away from these organizations. It is easy to dismiss that, because corporations aren’t people, right?
But corporations hire people. They provide jobs. By simply erasing billions of dollars worth of it, there will be a financial impact on the industry.
On one hand, loan forgiveness helps a lot of people, but on the other hand, it hurts many other people.
Your Home for Installment Loans
National Small Loan works with hundreds of new clients every day. With our online application, we have streamlined the lending process to make it as quick and easy as possible.
If you need a small loan of under $1200, and have no time to wait, contact NSL today!