“What will be the affect of adding another trillion or two to the national debt? Talking about hand hitting head.”
Only in government can they pretend that an “asset” - i.e. a non-performing student loan, actually has value.
It’s the same thing with Mortgaged Backed Securities that the Fed has loaded up on. They, under any normal (and legal) sense of accounting, have only a fraction of their face value.
At least with MBS there is an underlying piece of property that has some value
WIth a student loan - there is no asset. Only ability to pay.
So the government has ALREADY taken the hit on these loans - to the extent they are non-performing. So it’s a wash.
Put them through the bankruptcy process. Liquidate or restructure the debts as each individual can handle, and move on.
Believe me, I’m bitter as hell. I paid student loans, and I pay full boat tuition for two kids in college right now. It hurts.
but it does no good to expect an unemployed English Major with $100k in debt accruing at 9% annually to ever pay that back. They won’t do it. They won’t ever participate in the legitimate economy. Nobody wins.
” English Major with $100k in debt accruing at 9% annually to ever pay that back”
No one is talking about changing that and forgiving loans won’t change this situation in the future. College costs will still increase.
If we discharge that loan, no one learns the evil of big government. The message is that big government is good. Selling your soul to the government has no consequences.
See how compassionate they are?