Effects of Student Loan Forgives

BISMARCK, N.D. - A recent survey indicates 60 percent of Democratic voters support student loan forgiveness.

It's a big issue for some of the presidential candidates, especially with forgiveness plans from Senators Bernie Sanders and Elizabeth Warren.

According to the Federal Reserve Bank of New York, there's nearly $1.5 trillion in student debt as of 2019; nearly 11 percent of that debt was either delinquent or in default.

Students are looking for a way out of financial trouble, and that conversation is contentious on the national stage.

Nobody likes having debt. But since 2013, debt has been on the rise, according to the Federal Reserve Bank of New York. For many, the cost of school determines the destination.

"It was a big role. For sure, and then it had the program I was interested in, so it worked out perfectly. But yeah, money is a big deal,” BSC Student Chris Koester said.

Since 2003, the share student loan debt has steadily grown. Now, many voters are deciding which candidates to support based on their plans for college finances.

Ryan: "When these proposals come through, there's a lot of things we need to think about, especially unintended effects on the economy. Who's gonna pay for that? Who's going to fund that? When we're on a national scale, that's a lot of money,” BSC professor Ryan Jockers said.

Most of the major candidate's say they would place a tax on the uberwealthy, or increase taxes on income in the stock market.

Many economists argue freeing students from this debt will allow students to spend more, stimulating the economy. Others, had other ideas.

Braydon: "Put it towards other bills and stuff. I got car payments, rent, gotta eat too, food, I guess memberships I need to do. Maybe get my own Netflix account, or something like that. You never know,” BSC student Braydon Lund said.

Loan forgiveness programs being offered have never been implemented on such a scale. Both the debt and the proposals are reaching uncharted territory.