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 t

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?