Student loan (贷款) debt has become a worldwide problem. In America, the country's overall student debt reached a record of $1.6 trillion in 2019. The average person with student loan debt owed between $20,000 and $25,000. A recent Japanese government report says it has been lending over $9 billion yearly to students since 2010. Similar conditions exist in Africa and South America.
Several factors account for high student loan debt. One is that employers everywhere have increased their demands for skilled workers, making higher education a requirement for many jobs. The students, however, after graduation, often find that their country's economy is not strong enough to support their financial needs, so their ability to pay back the loan becomes a problem.
To solve the problem, many countries are seeking their ways. Australia has developed a system where students do not have to pay anything back until they are earning at least $40,000 a year. In America, several candidates running for president in the 2020 election have offered more extreme solutions that all or at least some of these loans will be forgiven.
Some professors in several universities recently studied what the effects of debt forgiveness might be. They found that, overall, sudden debt relief greatly improved the borrowers' lives. Not only did they have more money, but they were more likely to move to a new area and seek better paying work.
Yet the professors' research doesn't include what might happen to financial institutions or the overall economy if debt were totally forgiven. It only looks at how debt forgiveness would help the borrowers. They warn of some other possible negative effects. If a borrower knew that if he ran into any trouble he would be saved because he could get the debt relief, then he might actually become more reckless (轻率的) with his borrowing in the future.
No matter what, the professors agree that if countries do decide to approve some student debt relief the neediest students should be helped first.
