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Fully agree. And to continue this, I think one step that would be accepted across the aisle (in lieu of total debt forgiveness) is to either severely cut or get

Fully agree. And to continue this, I think one step that would be accepted across the aisle (in lieu of total debt forgiveness) is to either severely cut or get rid of interest rates on school loans. The compound interest working against students is a major part of the predation in these loans. But banks need to make money? Have a one-time interest tacked onto the total loan amount that doesn’t change over time. This incentivize banks to not loan out as much to just about anyone, and thereby forcing schools to spend less on frivolous staffing and social issues/needless expansion. Then, slowly reduce the federal student loan amounts to some arbitrarily low amount, something enough for someone on the median salary to comfortably pay back if they went to a state school. Blue collar jobs are in desperate need of apprenticeships. And there’s good money to be made. But it is legit hard, physical work. And work that needs to get more respect, because without it, water doesn’t run, lights don’t turn on, roads crumble, and buildings aren’t built.

nonethewiser 4y ago
> Fully agree. And to continue this, I think one step that would be accepted across the aisle (in lieu of total debt forgiveness) is to either severely cut or get rid of interest rates on school loans. I dont understand how you agree with the post yet come to this conclusion. If debt is the source of the problem why encourage more of it? The point is colleges can always raise prices because students can just take out bigger loans. This gets worse if you get rid of interest rates.
- spacephysics 4y ago
  You also put a cap that the median income worker can pay off reasonably. So anything above would need private loans
everforward 4y ago
Getting rid of interest on loans dramatically changes incentives. On loans with interest, the debtor is incentivized to pay as much as they can as quickly as they can to bring the principal (and resulting interest) down. On loans without interest, the debtor is incentivized to pay as little as possible and let inflation bring down the value of the principal. > But banks need to make money? Have a one-time interest tacked onto the total loan amount that doesn’t change over time. Again, as a student, wouldn't it make more sense for me to just not pay for like a decade and wait for inflation to halve the real value of the loan?

nonethewiser 4y ago

> Fully agree. And to continue this, I think one step that would be accepted across the aisle (in lieu of total debt forgiveness) is to either severely cut or get rid of interest rates on school loans. I dont understand how you agree with the post yet come to this conclusion. If debt is the source of the problem why encourage more of it? The point is colleges can always raise prices because students can just take out bigger loans. This gets worse if you get rid of interest rates.

spacephysics 4y ago
You also put a cap that the median income worker can pay off reasonably. So anything above would need private loans

everforward 4y ago

Getting rid of interest on loans dramatically changes incentives. On loans with interest, the debtor is incentivized to pay as much as they can as quickly as they can to bring the principal (and resulting interest) down. On loans without interest, the debtor is incentivized to pay as little as possible and let inflation bring down the value of the principal. > But banks need to make money? Have a one-time interest tacked onto the total loan amount that doesn’t change over time. Again, as a student, wouldn't it make more sense for me to just not pay for like a decade and wait for inflation to halve the real value of the loan?