I propose a policy to relieve student loan debt by eliminating the interest after a certain number of payments or a certain period of timely payments.
This will still allow lenders to make money while allowing borrowers to eventually pay off their debt by applying 100% of payments to the debt after an established amount of time.
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Lets go all the way, home loan interest forgiveness, vehicle loan interest forgiveness, business interest loan forgiveness. In fact, lets do away with all interest. Some people are responsible and actually planned to and did pay back their loans.
Why are “students” special?
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I gave you my vote although there is no fairness to this policy to those of us who have paid. Should we get a refund?? But this represents a median approach in the current debate, However there has to be fairness in the plan. Someone with 200k would get 4x the economic benefit. Cut the rate in half after 7 yrs.?? Make forgiven interest taxable??? Not sure what the answer is but it is not zero, Also there is no incentive to make more cost effective decisions in higher education or reduce the cost of tuition. Defunding colleges is the only way to reduce pricing. Cap annual tuition loans?? IDK but your policy is the middle ground presently but needs more thought in my opinion.
How about fairness to those who are completely debt free because they busted their arse and paid off EVERYTHING they purchased. Most people only thinking of their own debts and couldn’t care less about the responsible people who worked so hard to be debt free. I think people who paid off everything get a bonus for doing so. This country has always rewarded those who are most irresponsible and live beyond their means. What if someone only has student loans and paid off their mortgage, cars, credit cards, etc?
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