I think the people (universities charging excessive tuition) who helped create the student loan mess should play a major role in bailing those students out - not the federal government. I propose that we begin a tax on University endowments and use the funds generated to fund a program to help paydown outstanding student debt. The tax would be two fold - first a 3 percent tax on the total value of the endowment fund and then a capital gains tax (long term) on the net gains for that year. The program would be popular with the debtors and show some empathy for their situation, but be fiscally responsible since we are not using taxpayer funds to reduce their debt. 75% of the funds generated would be used for debt reduction and the remaining 25% would be available for grants to community (2 year) colleges who do not have endowment funds. Also, since we are increasing disposable income without using taxpayer funds it should stimulate economic growth without inflation.
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| Policy | Replies | Views | Activity | |
|---|---|---|---|---|
| Using Federal Tax Allocations to Support Student Loan Repayment | 0 | 8 | November 7, 2024 | |
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| Pre-tax Student Loan Repayment | 3 | 20 | November 17, 2024 | |
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| A New Approach to Student Loan Debt | 1 | 30 | December 7, 2024 |