The Federal government taking over the student loan program was a political decision with disastrous consequences. One of the most terrible decisions by politicians that results in disastrous economic consequences for individuals and the nation. A generation enslaved by student loan debt,postponed family formation,delayed housing decisions and postponed retirement savings will encumber individuals and the nation for years to come.
So why vote yes for prepayment relief ?
It will assure the reduction of $1,500,000,000,000 student loan debt because rates for such loans will rise as the risk of prepayment is transferred back to the investors in these loans. THERE IS A CAUTION HERE. Investors may be able to file suit for breach of contract by the Federal Government.
The better choice to this legislation is repeal existing legislation that enabled the current direct federal student loan lending. Enable other lending institutions to refinance student loans at current low interest rates.Lastly,a method to recoup Taxpayer money from those unjustly enriched by the student loan program is to tax the colleges and their endowments which have grown exponentially in this disastrous transfer of wealth.
The important thing is to take action to get the federal government out of the student loan business now before interest rates increase.
I would like to hear thoughts and alternatives from our legislators about the detailed facts and the proposed remedies outlined in this writing.