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1. Why would you assume they will be repaid fairly quickly? 2. $15,000 per working person in the US is a massive number of dollars per person. The medium US i
by wtvanhest 13y ago
1. Why would you assume they will be repaid fairly quickly?
2. $15,000 per working person in the US is a massive number of dollars per person. The medium US income is only about $50,000. Even if you spread the number out over 10 years (which would of course also increase the total interest paid), you are talking about $1,500 a year, which would be roughly 100% of people's discretionary income.
3. The number is growing and will continue to grow forever which means that the drag increases overtime, not that it gets paid off.
4. The student loans any individual borrows may individually benefit them relative to others, but there is no reason to believe that the total revenue (salary) grows at the same rate as the drag caused by the increase in debt service on a macro scale.
Its $1 trillion + interest that will drag on the economy for many, many, many years. You can't look at the trees in the forest to rationalize away the problem this huge debt load will have on the economy.
- maxerickson 13y agoWell, I didn't worry too much about that aspect of it since you had already said 10% of income towards them. But now you are complaining that $1500 is too much.
- wtvanhest 13y agoThe bottom line is that a trillion dollars and growing is a massive drag on the economy. There is no way around it. As the number grows it becomes a bigger and bigger problem. We need to fix our college education system to make it much, much more affordable.