The economy is truly a mess; with several economic indices approaching levels of those last seen in the 1930s. There are several stimuli, but there is one important item that has been overlooked: student loan debt is a tremendous economic burden to new graduates entering the work force.

It is estimated that currently there is $900 billion tied up in student loans, and this amount is increasing at a rate of about $3,000 a second. This number is significantly higher than the amount of credit card debt in the United States. Statistics from the American Student Assistance organization show that as of 2007 the average student has 27,000 dollars of debt for a 4-year degree. Those pursuing graduate work have an average of 47,000 dollars of cumulative student loan debt. Those pursing professional terminal degrees such as the Pharm.D, M.D./D.O, J.D., or DVM have debt levels that can reach well over 100,000 dollars.

With the average cost of tuition up 900% from 1978 levels, it is no wonder that a new graduate can spend substantial amounts of their monthly income servicing their debt. This is particularly disturbing when the unemployment rate for new graduates aged less than 25 is 9.3% as of 2010. A full one-third of new graduates end up taking jobs that do not even require a college degree.

There are many reasons why we currently find ourselves in this predicament. Every year tuition rates go up at both public and private schools. Students work hard to obtain virtually worthless degrees in the fields of social sciences and the humanities versus obtaining an education in the technical fields. The high unemployment rate and economic downturn certainly has not helped matters either.

Student loan debt takes an entirely different approach than credit card debt or mortgage debt. Few things in life are as certain as death and taxes; however, paying student loan debt is as close as it gets. Bankruptcy law makes it nearly impossible to discharge federal student loans. While most people are unaware of this, the Department of Education Office of Inspector General has, for all practical purposes, their own SWAT team. Law enforcement officials knocked down the door of an innocent man looking for his wife who had defaulted on her student loan debt. Granted, these officials were local police officers, but they were still serving a federal warrant.

In addition to the tactics listed above, up to 15% of monthly income can be garnished to pay student loans. Federal and state income tax refunds can be claimed for repayment. Professional licenses can be denied for default on loan payments.

Imagine the economic stimulus of having a portion, if not all, of student loan debt forgiven. Imagine for a minute what it would mean if millions of people had an extra 500 to 600 dollars a month to go to discretionary spending. People could go forth and buy big ticket items such as new homes, new vehicles, or basically just about anything for that price.

With our current economic woes full debt forgiveness is a long shot at best. That being said, even a partial forgiveness, say any amount over 30,000 dollars, would help tremendously with those currently trying to pay back their student loan debt.