Benefit of a Bailout Plan

Bailout Bill Benefits

The United States’ economy is going through an economical crisis. Today, it is harder for businesses to get a line of credit from the bank. This is particularly awful for those who are trying to establish a business for the first time and need a loan. Everything in the economy is interconnected, and when something gets interrupted and cut off, it may damage a great deal of other things. To save the economy from this predicament, the United States Treasury developed the Bailout Plan. There is a huge controversy to whether this bill should pass or not. Positively, the Bailout Bill will save student loans, help homeowners, and curb unemployment rate.

According to an article by the FOX News network, President George W. Bush stated that the credit crunch is threatening the availability of student loans, and in Bush’s weekly radio address, he quotes “A slowdown in the economy shouldn't mean a downturn in educational opportunities.” Bush also stated that the Education Department was stepping up efforts to make loans directly available to students. President Bush signed the $700 billion Emergency Economic Stabilization Act, which went into effect October. 3. The bill expanded its bailout plan to include buying student loans held by banks. Banks can loan and it will have a positive effect on students, making loans more accessible. Benjamin Keen, economics assistant professor, said if the bill had not passed, students could have been in more trouble because private student loans would be harder to find (Hughes). Students can now continue to attend college with ease knowing that their student loans are ensured with the help of the Bailout Bill.

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In addition, homeowners at risk of foreclosure may benefit from the bailout bill by being able to modify their mortgages. The purpose is to lower the payments to an amount that homeowners can pay them consistently. Organizations similar to the National Association of Realtors are pleased...