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I think something like this might be a more reasonable approach than forgiving student loan debt completely. There is little risk to banks servicing federally b
by m348e912 6y ago
I think something like this might be a more reasonable approach than forgiving student loan debt completely. There is little risk to banks servicing federally backed student loans, so interest rates should reflect that. There is a cost to servicing the loan, and banks should be compensated for that, but I don't think student loans should be a large government backed profit center for banks.
- uncoder0 6y agoYeah... I would even be fine if the govt covered the cost of servicing the loan to keep the interest at 0%.
- ipsocannibal 6y agoThe federal government used to subsidize the interest on some student loans. Isn't this effectively making the interest rate 0%.
- sjg007 6y agoJust run the program through the IRS.
- valuearb 6y agoZero risk isn’t zero cost. Banks pay interest to depositors, pay for loan servicing, have staff and marketing costs, etc. 0% would just be another handout to those least entitled to deserve one. The average college graduate will make roughly double the lifetime earnings of a high school graduate. Why should high school graduates pay more in taxes to make college loans cheaper for their bosses?
- jdmoreira 6y agoThe college graduate will pay at least double in taxes. Will hopefully also deliver more in terms of innovation a competitiveness. It could be easily seen as an incentive.
- valuearb 6y agoThe college graduate only pays more in taxes because they make immensely more. If your wages were doubled, would you complain about paying a quarter of the new earnings in taxes? They will contribute innovation regardless, why should they be allowed to foist their education costs on their subordinates?