Someone with a $20,000 college loan, who has paid $250 a month for 10 years, has repaid $30,000, but often still has an outstanding balance of $15,000 - because of the way the loan was written.
Loan relief says the borrower has paid 50% more than what they borrowed - so we're going to call it good and discharge the remaining balance.
The lender has already received a fair return on their investment.
Plus, someone in their late teens or early 20s is not fully equipped to understand the long-term effects of these high-interest loans - many of which are basically equivalent to Usury, trapping people in a lifetime of debt.
It's better to erase that debt, and allow the borrowers to spend the money in ways that better benefit the broader economy instead of filtering it through a middleman.
You know - like we did with the banks.
No comments:
Post a Comment