When it comes to having debt, it is no surprise that the United States is one of the biggest leaders. However most of the debt is somewhat seen as a strategic form of making one's country stronger. One major debt issue in the United States is student debt, but not for long.
The Wall Street Journal recently let out an article which really felt like it was light on the heart. Basically the title mentions how the United States is going to eventually forgive at least 108 billion dollars in student debt. This outstanding piece of information comes with quite the strategy.
Now the federal govenrment is directly involved in this because this problem is escalating quite a bit. As more people seek financial help for education, the generated revenue to fund higher education decreases. This got the GAO involved.
The GAO, or the Government Accountability Office disclosed a sum this wednesday when they talked about how much exactly the cost of all the programs cost. Earning shares were involved and eventually, forgiving of debt will be reached.
The entire loan program is over 1.2 Trillion Dollars and it works. In Summary, one asks for a loan, they get it. They then work it off after they graduate. Therefore the GAO said that even if over 100 Billion dollars in debt is forgiven, the program will still generate a profit to improve itself over and over.
This will be done in a very long and slow process of debt-relief programs. Fortune talks about this as well as they mentioned that these debt relief programs are to be worked with very slowly, chipping away for 10 to 20 years.
They mentioned that by the end of the 10 or 20 years the US would have forgiven at least $108 billion in debt and they will continue to make a profit.