Amsterdam planning to buy out young people's debt to offer them a "new start"

One of the most heated topics in the millennials vs. baby boomers debate is the student debt crisis. With the cost of going to college seeing a staggering rise in their lifetime, Millennials often cite student debt as the main reason for their financial troubles. This conversation has caught so much attention in recent times that even celebrities like comedian Hasan Minhaj have voiced their concerns regarding college costs and debt. While the United States is yet to come up with a solution for this pressing matter, the city of Amsterdam is now preparing to launch a trial project that'll take over the debts of its young adults.

According to The Guardian, this project aims to liberate young Dutch adults struggling to get into work or education due to their crippling debts. Such debts are believed to be standing the way of them joining the marketplace or pursuing higher education and under the new trial project, a municipal credit bank will negotiate with creditors to buy out the debts. Those included in the trial scheme will then be issued a loan to repay the dues as per their means.

The creditors participating in the scheme will each be given €750 (approximately $830) as an incentive to pass the debt on to the municipality’s bank. Furthermore, if they successfully engage in training or an educational program, they will be eligible to have more of their debt canceled. Speaking of the ambitious project, Amsterdam’s deputy mayor, Marjolein Moorman said, "Debts cause a lot of stress. And in the case of young people, debts often determine their future. The majority of these young people started out in arrears and, due to bad luck or ignorance, found themselves in a situation where they could not get out without help."

"That is why we are now going to help them so that they can make a new start," Moorman added. The debt-transfer project is set to launch in February with each person on the scheme being assigned a coach to help them navigate the formalities of the program and come up with a "guidance plan." Amsterdam hopes the trial project will help young people with unstable incomes as the city fears they find it almost impossible to restructure their finances and make the necessary repayments.

According to the official figures cited by The Guardian, over a third (34%) of Amsterdammers between the ages of 18 and 34 are crippled by debts. The average student debt in the Netherlands has shot up from €12,400 in 2015 to €13,700 in 2019 while the number of individuals with student debt rising from 388,000 to 1.4 million in the same time frame. News of the new scheme has seen mixed reactions on social media with some praising the city for taking such a step and others expressing their disapproval. "Those pesky socialists, trying to ruin the county again by helping exploited people become contributing members of society and participate in economic growth. It will end in doom I tell you," @KateEmerson88 tweeted. "Meanwhile in the civilized world there's progress," @SetarehSabety tweeted.