Despite the political hype, more than half of business economists believe that forgiving student loan debt would negatively affect the U.S. economy, according to a recent survey.
In fact, 64 percent of economists surveyed by the National Association for Business Economics Opens a New Window. (NABE) said canceling all, or even a majority, of student loan debt, would have a negative impact on the economy.
Meanwhile, one-fifth of respondents said student debt forgiveness would be helpful for the economy.
In June, student loan debt reached $1.6 trillion — the largest amount of non-mortgage debt in the U.S.
In July, Democratic 2020 presidential candidate Sen. Elizabeth Warren released details about her plan to cancel approximately $640 million in student loan debt for millions of Americans.
First unveiled in April, the Student Loan Debt Relief Act (which Warren introduced alongside Rep. James Clayburn, D-S.C.) would cancel up to $50,000 in student loan debt for every household with a gross income less than $100,000 — roughly 42 million Americans — or about three out of four borrowers.
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