Hillary Clinton's 'Debt-Free' College Proposal Falls Short of its Billing

[jeff47]

16. They're paying less taxes (directly and indirectly) during the 20 years they are paying the loan.

So that means the government gets less money over those 20 years.

Less spending -> less sales taxes paid.
Can't afford to buy a house -> less property taxes, since they're renting a smaller space than they are likely to buy.
Can't afford to buy a new car -> less sales and property taxes due to keeping a "clunker", less income to car dealer, etc.

Also they will be spending and supporting the economy around them.

Except they will be spending much less during the 20 years they pay on the student loan, because it is a larger percentage of their smaller income.

And both are equally able to start a big company.

Nope. The one paying student loans will have a harder time financing a startup. They have a lot more debt, and they have a big fixed payment every month.

And by the time they finally pay off the loans, they are more likely to be saddled with recurring expenses. Such as children.