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The Macro Implications Of The Student Loan Decision
If you're wondering what the Supreme Court's decision to nix Joe Biden's student debt relief plan means for the macro outlook, I regret to inform you that it's impossible to know.
For one thing, Biden will almost surely try something else, probably immediately, and whatever that something is will be aimed at improving the financial prospects of the very same indebted student who would've benefited from the debt plan.
In addition, for all the hand-wringing about the purported inflationary impac
Perhaps they can lower interest rates on the debt and stretch out the maturity.
Let’s quit encouraging these stupid loans for education if the borrowers won’t or can’t pay the money back with a lifetime of employment.
If education is “an investment in the future” then the Federal government (i.e., Department of Treasury) should be the entity providing the Student Loans directly, not commercial banks. The IRS already has the mechanism to receive forms and disperse money. They also have the framework to collect. Most importantly, they have a range of fee schedules, from a swing trader making their quarterly payments to a “Public Charity” accepting their donations. It shouldn’t be a big leap to setting up repayment schedules capable of accommodating those that walk into a well paying tech world through a “do-gooder” pay scale, and in between. The over-head should be a lot lower, and it would relieve at least some of the burden on a (another) population subject to what amounts to predatory lending practices.