Let’s talk about forgiving student loans….
My student loan forgiveness plan makes good economical sense for both the student and the government. It assures an economically better and more educated society, which in turn makes us a stronger nation.
According to the U.S. Bureau of Labor Statistics the average high school graduate earned $34,736 per year in 2014 while the average person with a Master’s degree earned $68,952. If you multiply these number by a 35 career year term you find the high school graduate earned $1,215,760 and that with a master’s earned $2,413,320.
Using a 15% tax for the high school graduate and 25% tax for those with a master’s degree we find those with a master’s degree paid the government $420,999 more than those with a high school diploma.
The average cost of obtaining a master’s degree runs about $80,000, after paying the loan off the government will receive $340,999 more in taxes than from the high school graduate.
To qualify for the program you must complete the original degree and be employed in a related field for five years or more. While certain degrees and professions would carry additional incentives.
Statistics show the greater one’s education, the greater their earnings and the more income tax they pay over a lifetime. The end result is the student receives a free education, society benefits and the government receives a return on its investment.