LogFAQs > #967581153

The problem is far worse, and this isn't going to help almost anyone who was already in really bad situations. A loan taken in 2015, with payments being made till covid started, can have increased by over 2x (for the principle) by 2020. That should not be possible, but it is the reality.

People who had 60k in loans in 2015, have over 150k in loans now, that is due to the way the banks deal with the interest, convert it to principle etc.

So 10k or 20k might help those college drop outs who never got an AA, but anyone who got a BA or Masters degree and is currently drowning in debt, it's not even gonna touch the interest accrued, let alone the base loan.

Dropping the (currently 10%), max of your net income to 5% will at least reduce how much pain the people will be in while paying off their loans for the rest of their lives, but who is to say that won't change in the future?

If you have 100k in loans right now (even if you only started with 40k), the 10-20k forgiveness, even if it goes through, wont' actually make any difference at all for 99.9% of people.

A simple solution is to just flat out forgive any interest left on all loans for all students period, and reduce interest in the future to 2% a year flat (no compounding the interest and making it part of the principle etc).

While that might not help a few people who owe less than 20k as much, it would give a lifeline to people who have been paying back loans for up to a decade and just getting deeper and deeper in debt.

IF you took a loan out for 60k, you should not owe double that, especially if you were making payments all that time, it's just usery and should be illegal.