wow, what an abstract and deplorable example of NIMBY.
i.e. "we want people to suffer crippling debt because we are worried about bananas costing 10 cents more"
59% of Americans worry student loan forgiveness will make inflation worse
11–20 of 153 posts
Re: 59% of Americans worry student loan forgiveness will make inflation worse
#12The entire student loan debt issue has been framed badly, because hardly anyone understands the real problem: "As of March 2021, 54% of borrowers with outstanding education debt owed less than $20,000; 45% of the outstanding federal education loan debt was held by the 10% of borrowers owing $80,000 or more." https://research.collegeboard.org/media/pdf/trends-college-p... Forgiving $10K across the board is dumb and mi…
In America, we stopped being objective a while ago and everything is "The other side is out to get us. Other side BAD". One side there are people who are pissed because they had to pay off loans and why should kids get it for free now while the other side is crying about the uncontrollable rising costs of education where a History Major costs $80K for 4 years. No one is looking at this problem objectively which is to understand why and where the costs are rising and how we can control it instead of just band aids.
Re: 59% of Americans worry student loan forgiveness will make inflation worse
#13The only way to "forgive" loans without causing inflation would be to screw over the banks by writing off the debt, forcing a credit crunch.
> screw over the banks by writing off the debt The banks don't hold this debt, the federal government does. That's why the federal government can forgive it. That's why the federal government has been able to suspend payments for 2 years. The government can't forgive debt held by someone else.
"Most lenders are huge institutions, such as international banks or the government. After a loan is originated, however, it represents an asset that can be bought and sold on the market."
Source: https://www.investopedia.com/articles/personal-finance/08121...
Re: 59% of Americans worry student loan forgiveness will make inflation worse
#14wow, what an abstract and deplorable example of NIMBY. i.e. "we want people to suffer crippling debt because we are worried about bananas costing 10 cents more"
The macroeconomic literacy of your average voter is pretty poor unfortunately.
https://news.gallup.com/opinion/polling-matters/393584/ameri...
https://morningconsult.com/2022/05/18/power-to-control-infla...
Re: 59% of Americans worry student loan forgiveness will make inflation worse
#15Just make student loans easier to eliminate in bankruptcy. Problem solved.
Re: 59% of Americans worry student loan forgiveness will make inflation worse
#16The only way to "forgive" loans without causing inflation would be to screw over the banks by writing off the debt, forcing a credit crunch.
> screw over the banks by writing off the debt The banks don't hold this debt, the federal government does. That's why the federal government can forgive it. That's why the federal government has been able to suspend payments for 2 years. The government can't forgive debt held by someone else.
The federal government doesn't forgive debt, it just changes who's paying for it
Re: 59% of Americans worry student loan forgiveness will make inflation worse
#17The entire student loan debt issue has been framed badly, because hardly anyone understands the real problem: "As of March 2021, 54% of borrowers with outstanding education debt owed less than $20,000; 45% of the outstanding federal education loan debt was held by the 10% of borrowers owing $80,000 or more." https://research.collegeboard.org/media/pdf/trends-college-p... Forgiving $10K across the board is dumb and mi…
A huge group of Americans have less than $1000 in the bank. A student loan of $20k can still be a huge financial hardship for them.
Re: 59% of Americans worry student loan forgiveness will make inflation worse
#18I’m not an economist, but it would seem reasonable that the printing of money would cause inflation, yes?
Re: 59% of Americans worry student loan forgiveness will make inflation worse
#19[deleted]
Re: 59% of Americans worry student loan forgiveness will make inflation worse
#20Earlier quoted context omitted.
> screw over the banks by writing off the debt The banks don't hold this debt, the federal government does. That's why the federal government can forgive it. That's why the federal government has been able to suspend payments for 2 years. The government can't forgive debt held by someone else.
The federal government doesn't forgive debt, it just changes who's paying for it
Right, they change the who from "former student" to "no one".