Eliminate Interest on Federal Student Loans and Student Loan Debt Forgiveness for Pandemic Workers

I propose a simple solution that will help ease the burden of student loan debt for Americans and help eliminate these debts for good. Eliminate interest on outstanding federal student loan debts. Eliminate fees for hardship such as forbearance that only increases the debt.

Eliminating interest will promote debt repayment. It will also help prospective homebuyers achieve the dream of homeownership by lowering the liability being counted by mortgage companies for these debts.

My proposal for student loan debt forgiveness would be to immediately forgive any federal student loan debt for healthcare workers who worked during the pandemic. Nurses and healthcare workers were on the front lines during the pandemic. They should be unburdened of these debts.

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I understand where you are coming from, but this doesn’t seem like the best idea.

Wanting a higher education is great, but it is a personal choice. There are alternatives, so someone does not have to go into crippling debt. Choosing an in state college and simply going somewhere cheaper is a better alternative in my opinion.

The military and schools help pay off their employees debts, so I feel like the government is doing plenty. Also, where would the government be getting this money? Most likely from taxpayer money, which it seems like a lot of it already goes to helping people. Unemployment, for example. There are better things to be spent on instead of fixing people’s poor decisions.

A better alternative to the nurse issue would be for the hospital systems to pay it off. Most nurses are private employees, working for a private business. They help line the pockets for these big companies, so I think they should have to help out. Were they charging for treatment during covid? Also, these nurses were being paid for their time, not to mention the stimulus checks.

Cancelling federal debt is not paid by anyone else. This is a huge misconception. The department of treasury simply stops collecting on the debt. Federal student loan debt is not transferred to anyone when forgiven. Federal loan debt and private loan debt are two very different things. 95% of all outstanding student loan debt is federal.

The narrative of student loan debt being transferred to taxpayers is pushed by the media for political agenda. This is completely false.

I’m not proposing canceling debt for all, eliminate the interest so that payments will be lower and the balances will decrease.

There are already programs to eliminate student loans for public service. Anyone who risked their lives to save others during the pandemic, deserves more than a stimulus check IMO.

Again, I want to educate anyone that reads this, “federal student loan debt” cancellation is not paid for by taxpayers. The debts will be eliminated, wiped off, and the department of treasury will no longer collect on the debt. All of the payments that are being made will be thrust into our economy. More money to buy cars, groceries, ect. This helps everyone instead of pumping this money back into our government to be used unwisely.

Something definitely needs to give in terms of the Interest. The Compounded Interest is what keeps people in debt with these loans for a lifetime - they can never pay them off because of the Compounded Interest. A total write off of the Interest would be nice, but doubtful it will ever pass - but at least be rid of the compounded interest. My kids have no problem repaying the debt they had to sign up for in order to achieve their Degrees, but the compounded Interest is prohibitive to them ever being able to own a home or get ahead in life!

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We definitely need reform for the interest portion. Daily compounded interest is ridiculous. I am totally fine paying the loans I took out but the interest is a killer. I think there should be a one time adjustment that looks at what you initially took out and how much you have paid in (including interest). The delta is what you now owe. I imagine we would end up with several peoples loans disappearing. So many people have spent years making payments and have paid in way more than what they initially took out. None of this means anything if we don’t change how interest is calculated or get rid of it entirely.

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I think the federal government can live without the interest payments from students. Ask yourself why this simple solution has not happened? This is because they don’t want the debts to be paid off. Politicians want to enslave the borrowers to become their votes. The borrower is a slave to the debtor. Enslave the kids right out of high school.

Another thing that needs to be reformed are the meaningless degree options they sell to these kids. Data needs to be used to determine the value of each degree. If the degree is not helping people earn, federal funds should not be allowed for lending purposes.

Majoring in an invalid subject is how kids get into a situation where they spend 80k on a degree, and then find a job out of school making 40k. As a loan officer, I have seen this over and over again. Wages are not increasing in relation to the validity to some of the degree options kids choose from. Only degrees with a proven return on investment should be offer in higher education institutions. Artificial intelligence is going to make even more degrees obsolete. People will be in repayment and their industry will disappear with the development of artificial intelligence.

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