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Trillions would be injected into economy, nothing added to national debt.

The U.S. federal student loan system has failed. Catastrophically.

There are 44 million federal student loan borrowers in the country carrying about $1.5 Trillion in federal student loan debt. According to Education Secretary Betsy DeVos last year, 75% of these people were either unable to make payments on their loans, or were paying, but their balances were going up. Trump appointee Wayne Johnson, who ran the federal lending system until recently, said that this was closer to 80% just before covid-19 hit. …


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The next President can and must erase them, start over.

There are 44 million federal student loan borrowers in the country carrying about $1.5 Trillion in federal student loan debt. According to Education Secretary Betsy DeVos last year, 75% of these people were either unable to make payments on their loans, or were paying, but their balances were going up. Trump appointee Wayne Johnson, who ran the federal lending system under DeVos, said that this was closer to 80% just before covid-19 hit. Also, we now know that the class of 2004 are defaulting on their loans 40% of the time. These borrowers, however, only borrowed a third of what today’s students are being compelled to borrow. Given this, it is no stretch to say that the default rate for more recent borrowers will surely be 70% if not higher…and even higher still considering this pandemic, and the uneven economic recovery that we are seeing. …


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Media is badly misreporting, overselling his tricky agenda

If mainstream media reports on Joe Biden’s student loan plan are to believed, one would think that Biden is being extremely generous to the 55 million student loan borrowers and cosigners in the country. According to reports that have gone viral in recent weeks, Biden is promising to eliminate the loans of people who went to public colleges, and earn less than $125,000 per year. He is also pledging to cancel $10,000 for all borrowers, across the board. Further he is reportedly pledging to return bankruptcy protections to all student loans. …


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Distressed borrowers are the biggest electoral bonanza in modern U.S. history

This piece originally published August 25th, 2020

A lot has happened on the student loan issue since 2016. The presidential candidates had better take heed. We now know, for example, that at least 75% of all federal loan borrowers are either in default, forbearance, delinquent, unable to make payments on their loans, or they are paying but their balance is going up, not down. We also now know that 40% of 2004 students- who were only borrowing one-third of what is being borrowed today- will, or already have defaulted on their loans. …


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No tax money required. Nothing will be added to the national debt.

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here are 44 million federal student loan borrowers in the country carrying about $1.5 Trillion in federal student loan debt. According to Education Secretary Betsy DeVos last year, 75% of these people were either unable to make payments on their loans, or were paying, but their balances were going up. Trump appointee Wayne Johnson, who ran the federal lending system under DeVos, said that this was closer to 80% just before covid-19 hit. Also, we now know that the class of 2004 are defaulting on their loans 40% of the time. This class, however, was only borrowing a third of what students are borrowing today. It is no stretch to say that the default rate for more recent borrowers will surely be 70% if not higher…and even higher still considering the pandemic and the uneven economic recovery that we are seeing. …

About

Alan Collinge

I am Founder of StudentLoanJustice.Org, author of The Student Loan Scam (Beacon Press), and creator of the petition Change.Org/CancelStudentLoans

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