How Cancelling Everyone’s Student Debt Could Help the Economy

“If the government were to forgive all the student debt it owns (which makes up more than 90 percent of all outstanding student debt), and bought out all private holders of such debt, a surge in consumer demand — and thus, employment and economic growth — would ensue.”

Here’s something interesting to think about that won’t ever happen.

New York magazine shares the results of a new study which suggests cancelling everyone’s student debt would help the overall economy.

The research suggests canceling all student debt would increase GDP by between $86 billion and $108 billion per year, over the next decade, add between 1.2 and 1.5 million jobs to the economy, and reduce the unemployment rate by between 0.22 and 0.36 percent.