Today, Serena from Queercents asked, "could student loan forgiveness stimulate the economy?"
One of the reasons I am in such a hurry to pay off my credit card/LOC debt is because, after more than two years on Interest Relief, I could be called on to start paying back my loans as early as this May. I plan to keep applying for Interest Relief for as long as I can, and hopefully make it through to the Debt Reduction in Repayment program, but there is no guarantee that I will continue with my special status past this spring (fingers crossed).
My loan payments will be in between $350 and $400 a month, for 14 years. During this time I would only be able to make the minimums on the other debts, if that. This means that I will be debt-free by the time I am fifty. FIFTY!! Forget ever buying a house then. Forget having any disposable income either, and that's not good for the economy.
Why should my loans be forgiven? I borrowed the money, I should pay it back right? Yes, but in the context of billions of dollars of bailout payments, what is my $32 000? Mind you, I'm in Canada and as far as I know we haven't had to bail anyone out yet, but our economies are globally linked and we are being affected here as well. If the Canadian government wants us to spend to save the economy, then some of us are going to need a little help freeing up some disposable income. For me, forgiving my student loan will help dramatically. I'll pay off the consumer loan ... I just need a little help with the other one.