Student loan debt forgiveness would hurt US economy, survey finds

Despite the political hype, more than half of business economists believe that forgiving student loan debt would negatively affect the U.S. economy, according to a recent survey.

Continue Reading Below

In fact, 64 percent of economists surveyed by the National Association for Business Economics (NABE) said canceling all, or even a majority, of student loan debt, would have a negative impact on the economy.

Meanwhile, one-fifth of respondents said student debt forgiveness would be helpful for the economy.

According to the outlet, 226 NABE members participated in the survey, which was conducted from July 14 to Aug. 1.

Approximately 61 percent of the respondents were also in favor of raising the federal minimum wage, which is currently $7.25, according to the survey.

However, 11 percent said there was no need to raise it and about 19 percent said the federal minimum wage should be completely abolished.

In June, student loan debt reached $1.6 trillion -- the largest amount of non-mortgage debt in the U.S.

In July, Democratic 2020 presidential candidate Sen. Elizabeth Warren released details about her plan to cancel approximately $640 million in student loan debt for millions of Americans.

First unveiled in April, the Student Loan Debt Relief Act (which Warren introduced alongside Rep. James Clayburn, D-S.C.) would cancel up to $50,000 in student loan debt for every household with a gross income less than $100,000 -- roughly 42 million Americans --  or about three out of four borrowers.

CLICK HERE TO READ MORE ON FOX BUSINESS

Warren’s plan came on the heels of a similar -- but perhaps more far-reaching -- plan proposed by 2020 rival Sen. Bernie Sanders, who, at the end of June, rolled out, alongside Reps. Pramila Jayapal, D-Wash., Ilhan Omar, D-Minn., and Alexandria Ocasio-Cortez, D-N.Y.,  legislation that would cancel all $1.6 trillion of student loan debt in the U.S.

FOX Business’ Megan Henney contributed to this report.