It is flatly hard to overestimate the broad-based impact that spiraling student loan exactions are having in the United States, with scores of millions of people being saddled with long-term debt that can affect their spending and consumption decisions for decades.
Here is a telling piece of information supplied courtesy of a national media story on student debt that puts the matter into focus.
Reportedly, student debt has spiked by more than 350 percent since 2003. One major investment management company contrasts that to mortgage debt, which it states has risen by about 50 percent over the same period.
The disparity is highly troubling, notes the Wall Street firm BlackRock. The company contends that, while home-related payments generally comprise “productive debt,” the continuing monthly payment duties of millions of debtors are merely a drag on the general economy and dampen the future prospects of those borrowers.
What BlackRock proposes as at least a partial antidote to that result is a scheme that the CNN report noted above states is “raising eyebrows,” namely, total debt forgiveness for select persons saddled with student loans.
That proposal contrasts with suggestions already made that focus on repayment extensions and lowered interest rates through refinancing.
BlackRock states that “a real velocity” would result from such a move, since it would enable many people to buy homes. In turn, the investment company states that a salutary ripple effect would occur across many industries, bringing with it job creation and increased tax monies.
Although such a suggestion is undeniably newsworthy, its actual implementation is of course far from becoming a certain reality. There are critics, which include some economists and, unsurprisingly, affected lenders.
Student loan repayment duties are a sizable problem for many people across the country, including in Texas, and often result in larger debt issues for individuals and families. In instances where financial challenges become dire or even insuperable, a proven debt relief attorney may be able to work with a client to identify and implement strategies that deal responsibly with debt and enable a fresh financial start.