Student Loan Forgiveness Critics Are Wrong About Who Benefits and Why

[dugog55]

1. I think a much cleaner and cheaper solution to student debt, that would be accepted by both parties

would be to pay off everyone's interest payments and refinance all the loans at a 1 or 2% interest rate. Most people do not know that student loans, other that the subsidized Stafford loans can run up to an 8% interest rates. That is ridiculous. Even smaller loans of 30K at 8% is crippling, that is $200 a month just to keep up with interest, not touching the principal. Most students that continue their education after four years to get a doctorate, JD, or any other degree requiring more than four years of college can easily have a loan in the $100K to 200K range. At 8% interest, they will not even be able to keep up with the interest payments. They will be paying on those loans the rest of their life. With no way out of debtors prison. This is completely unacceptable.

At a much lower interest rates, students can start making a dent in their actual loan amount and not just keep shoveling money into an abyss of interest payments. With this system, the students will still shoulder the load of their schooling costs, but would actually have a chance to see the end of the tunnel down the road. And they won't be throwing thousands of dollars down the toilet on interest payments. Frankly, I do not see how Congress allowed this to get out of control in the early 2000's. They should all be ashamed of themselves.