Forget Bailing Out Builders, Bail Out The Student Loan Holder
People with student loans went to college. Most likely, they’re working–working their butts off to pay for student loans. These are people who buy homes, invest in the stock market, have families. These are just the sort of people the government wants to have more disposable income.
This one action alone would pour money back into the economy and have the added benefit of disproportionately helping minorities, who tend to get lower paying, public-sector jobs after graduation.Most of all, it puts money into the hands of taxpayers.
I doubt this idea will happen, though. There are kids in school right now. What about them? This remedy does nothing to help those who make less money, often because they have less education. However, those people tend to be paying less federal income tax. You have to make money to pay taxes.
Student loans are killing the economy. The car makers want to sell cars? The bankers want good risks? The home builders want people buying houses? Save the student loan holder. There are lots of things they could do with their money, if it weren’t all going toward paying their loans.
P.S. Do you know what sector has doubled inflation over the last ten years? That’s right. Education. Education costs have soared. Do you know why? The government. I’ve written about this before, but subsidized loans to a certain level gives schools the freedom to up their tuition and costs to the level of the Federal student loan limits. This causes inflation. Higher education is big business. Students this year get a break, but next year will be worse. It needs to stop. Make student loans illegal and all of a sudden education gets affordable. A lot of professors would get fired, though.
Cross-posted at MelissaClouthier.com