Is There a Better Way of President Biden Addressing The Student Loan Debts?
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Apparently there is and it is already making a huge difference.
A little over a month ago, I wrote an article on the subject matter of Joe Biden cancelling the debts of tens of millions of Americans.
I must confess that I was surprised by the attention that the article received.
And what I also didn’t expect were people in this space who were diametrically and violently opposed to the initiative of wiping off huge amounts of debts of poor Americans.
To these people, the notion of debt forgiveness is anathema.
The chances are high that anyone who has grown up in the west in the last forty years would be profoundly sympathetic to the world view of the likes of Milton Friedman and Fredrick Hayek, who succeeded in convincing millions of Americans (and Brits) that government was the problem and the private sector was the solution.
But we have come to appreciate over time in the harshest way possible, that handing over the powers of state to big finance is the very worst thing that any government could do.
But back to the topic of multi trillion dollar student loan industry.
According to some experts, there is a much better way of addressing student loans and what’s better is that it is very much in place.
And what might that be?
0 % interest rates on loan repayments.
According to an article in Bloomberg by Ella Ceron and Claire Ballentine, it was stipulated that the interest rate freeze on loan payments is having a much bigger impact than the $10,000 debt forgiveness being proposed by President Biden.
Based entirely on the work done with experts, it is estimated that borrowers saved $37.2 billion in repayments since the introduction of 0% interest rates on repayments.
