I would agree with modifying terms: extending periods, converting to interest-free (while making minimum payments), and as you said, reducing the principle - in the form of a tax rebate, similar to the EIPs - while working for a qualified employer/organization.
Banks shouldn't be able to collect as much as they have in interest... like more than a mortgage.
Granted, people shouldn't be so misguided to borrow so much and at high rates. I mean ... even in the mid-to-late '90s, my wife's student loan interest rates were lower than our mortgate interest rates, and mortgage rates were 2-3x higher back then.
We Libertarians have many sayings around this ... that, yeah, the system should protect you, but ... it won't, we guarantee it won't at some point, so ... don't be ignorant ... know the cost to borrow ... the consequences of doing anything -- whether it's a mortgage or student loans or anything else -- so you don't get f'd by the system, especiallly when government gets involved. And we've been proven correct again and again and again.
Because once the feds got way too involved during the Clinton and W. administrations -- and W.'s wife was big on education and added yet more funding (it's the opposite of what the Mass Media clains) and made some of this far, far worse for people (
yet, more public funding making things worse many times!) -- banks were able to take advantage ofall sorts of things.
That's been my main issue, and why I wish they'd really address that, and not forgiveness as much. Obama talked about doing some good things about interest, then got the
'forgiveness' bug and we've been f'd since.
To completely forgive loans to those not paying their debts is a complete slap in the face to those of us who made better decisions, and busted tail to pay off what debts we did commit to.
My wife had about $4,000 forgiven for spending 6 years teaching in poor income areas. There are many options for various fields, especially educators like the woman in this article.
Clinton had Americorps that forgave student loan debt too. Clinton started some of the student loan mess, and W. acclerated it, probalby more than anyone. Obama then tried to address it and made it even worse.
I understand Obama was trying to avoid ex-post-facto, but at some point ... the banks had made even more money than they should have. It's really a prime example of how the feds make things worse.
There were reasons outside my control that 'encouraged' me to choose to goto a community college, then a local, public in-state university... In addition to strategically selecting a degree with high employment and income potential.
Even UCF students can be Transient students, as an UCF locked into their degree and requirements, and take nearly all their classes their first 2 years at any state community/4-year college ... fully signed off that the classes will apply.
I did it when I had trouble getting classes in the '90s because UCF was booming and sections were closing early.
But yes, people either need to pick up a trade as a fallback or pick a degree that has demand. I know a lot of arts majors who get into IT for this reason, as a fallback. Me? I was already doing IT, and studied EE w/semiconductor because I wanted to understand the physical-analog world of what I was working on.
People also forget college really isn't about a job, but bettering ones knowledge. I have no idea when people thought English and other arts degrees were staple degrees affording the payoff of 6 figures of student loans.
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