Canceling Student Loan Debt Petition
Alan Collinge of the Student Loan Justice Org. has a petition promoting the cancellation of Student Loan Debt. When Angry Bear ran (April 1) his commentary on Student Loan Debt asking for signatures, there were 161,000 signatures on the petition. A couple of days later, the number of signatures was approaching 200,000 Today, I was advised, they now have 211,000 signatures.
If the Fed will be supporting the asset-backed markets, the primary corporate bond markets, the secondary corporate bond markets. The Fed will also purchase of Treasuries, mortgage backed securities in vast amounts. Fannie Mae and Freddie Mac also made some announcements. There were also rumors of a special carve-out just for Boeing and GE even though Boeing refusing to give an ownership stake to the Fed. At the least, the Fed could discount the price paid and sell back at market.
The issue for Alan, the Student Loan Justice Org, and its members is; why not bail out people with excessive student loan debt much of which is the result of interest from forbearance, penalties, etc.?
The student loan justice.org is needs your help by your signing the “President Trump: Cancel Student Loans NOW“ petition. Please join student loan justice.org and the 211,000 (up from 161,000) signers of the petition calling for President Trump to prioritize canceling student loan debt. Doing such would cause many citizens burdened with debt to be more productive promoting economic growth.
Angry Bear has posted Alan’s words over the years on Student Loans and the resulting Student Loan debt to which there is no bankruptcy relief; the same relief our president has enjoyed multiple times, also abused by corporations who gambled on Wall Street, and used in every day by businesses, unions, and ordinary citizens caught up in bad economies. There is a large economic potential benefit to freeing them from the loan debt so as to be more productive.
Read the petition and if you can spare a signature, please add your name.
My angle on student loans — just an angle.
Smooth ransition to a European like college loan system: 25 years to pay off — income based — then, forgive for any amount left. The kind of system we should have had in the first place.
Simple: fed gov offers to pay off any college loan amount that you owe — in exchange you agree to take on the European style loan setup. For people just out of school the exchange would be simple — straight forward trade of debt.
The loan switching scheme avoids some of the problems with graduates who have kept up their payments objecting to simple loan wipe out for graduates who have not.
Why would people with forgiven student loans become more productive? Does this effect work for car loans? Would it work on non-debt obligations, like utility bills?
They will be more productive because their cash will go towards purchases instead of debt.
new addy? Bounced back at me.
Yes, when I moved I had to change it. Since the login still works I did not bother to change it on the site.
I’ll email you.
Interest, alone, on the nation’s student debt portfolios is in excess of $100 Billion per year. That is money being sucked out of the consumer economy. Cancelling student loans will not only free that up, it will also inject something like $1 Trillion in new borrowing capacity.
So this is a far greater stimulus than what has so far been estimated.
I substitute teach at a nearby High School; mostly AP — Economics, Government, History and Physics. Love it. Each year I get to know some smart kids; love to talk with them.
It is not unusual to commend a student on having a good mind, ask if they’ve decided on a college, and get the response that they are going to a community or Jr. because of lack of money.
This is no way to run a nation.