Just set the interest rate to 0%. Helps loan repayment while also making people pay back their loans. Seems like a happy middle ground and it wouldn't violate any laws (to my knowledge).
Sure, but what bank is going to offer that 0% loan? Or if you mean on existing loans, who is going to pay the bank for carrying that interest free loan?
The answer is ALWAYS the taxpayer. Maybe some of you geniuses should go take an economics class.
I’ll summarize for you all:
THERE IS NO FREE LUNCH!!!
Loans owned by the government can be set to 0%. If it's a financial institution that owns the loans then tough titties.
There most certainly are free lunches or do you not remember the corporate bailouts?
Also, the banks were bailed out in 2008.
And that money came from the thin air? Where is it exactly that you think the government gets the money they so freely sling around.
That lunch must be paid for by someone, if not the freeloaders being bought by the swamp. You and I pay for every-fucking-thing. Well, maybe I assume too much. Taxpayers like myself pay for everything. So I repeat for the thick of skull:
THERE IS NO FUCKING FREE LUNCH!!
Financial institutions have a right to engage in business and make money. The way they make money is charging interest on loans.
When the government tells a business that they are not permitted to make a profit in one aspect of their business; i.e., student loans versus all other loans, then that business has to make up that lost income elsewhere.
The banks will make up that lost income by charging other borrowers more interest. When a person files for bankruptcy, the debts that are discharged don't merely disappear. Well they disappear for the debtor but not for the creditor.
The creditor has lost income in the form of interest along with the money they loaned the bankrupt debtor. So where is the creditor going to make up that loss?
They can claim a loss on income taxes and also charge more for goods, services or interest to other consumers.
Too many people are using bankruptcy as a way of shedding debt that they have the ability to pay. In other words, bankruptcy isn't used to rescue someone from financial disaster through no fault of their own. It's a financial management tool.
If someone is stricken with a disabling disease and no longer able to work, that's what bankruptcy laws were designed for. It was a way to rescue someone from financial disaster.
Yours truly has a scumbag sister that used the bankruptcy court to get rid of her and her husband's debt. Primary residences and automobiles are protected assets. They cannot be seized and if able to pay the mortgage, the debtor isn't discharged from that debt.
So guess what sister and brother-in-law did? After getting rid of all their other debt, they paid off their mortgage early - VERY early!
The ex-wife was always fond of telling me how much smarter she was than me with money. Well she was so smart that she got rid of her debts through bankruptcy. The biggest laugh that I got was that she stiffed her divorce attorney for $40,000!
Regardless of that, her student loan debt wasn't cancelled. It can't be cancelled if the debtor is gainfully employed as a result of the education she received which was paid for by the student loan. So the witch still owes about $75,000 in student loan debt!
Please pardon the lengthy post but I am going somewhere with this.
After the ex-wife was discharged of all of her debts except for those mentioned above, she goes on a lot of vacations! That's right, it's a lot easier to go on vacation to nice places when you don't owe as many people as you did before.
So guess who pays for that? If you have been paying attention, we ultimately pay for dead beats like my sister and ex-wife.
So let's poo-poo the idea of interest free loans for degrees in gender studies and Marxism.
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