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> Seems to me that the government has a much better way to stimulate the economy: lower rates on existing student loans. I agree about the banks, but how stimu
by gherkin0 11y ago
> Seems to me that the government has a much better way to stimulate the economy: lower rates on existing student loans.
I agree about the banks, but how stimulating would lowering rates on student loads really be, though? While students overburdened by debt get a lot of press, it seems like too small of a demographic to help much. I think we'd get more bang for the buck with programs that target lower skilled and unemployed people.
- jfoutz 11y ago1.2 trillion [1]. rates bounce around but 5% seems fair. It's a weird world when i can't tell if 60 billion dollars is a lot or not. One thing to keep in mind, they're young. If they save the extra money, they've got a loooong time for compound interest to work on those dollars. [1] https://en.wikipedia.org/wiki/Student_debt#United_States https://en.wikipedia.org/wiki/Student_debt#United_States
- gherkin0 11y ago> One thing to keep in mind, they're young. If they save the extra money, they've got a loooong time for compound interest to work on those dollars. But isn't that the exact opposite of what you want to happen? It you want to stimulate the economy, you want people to spend more money now. College graduates taking the money they save from reduced loan payments and putting it in a 401k doesn't do that, but giving a formerly unemployed person a job so they can buy new clothes and a car does.