tag:blogger.com,1999:blog-4202804909803677380.post5450448169867895950..comments2024-03-28T08:37:14.025-07:00Comments on Condemned to DEBT: DOE plays Whack-a-Mole with the Student Loan Program: Not a safety net but a nooseRichard Fosseyhttp://www.blogger.com/profile/05915307718139521622noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4202804909803677380.post-47122507061929155992023-01-14T13:29:44.923-08:002023-01-14T13:29:44.923-08:00Does the new DOE plan really strangle the taxpayer...Does the new DOE plan really strangle the taxpayers?<br /><br />It might, but I would be cautious in saying this.<br />Let me put out some rough numbers.<br /><br />1. There is about $1.6 trillion of outstanding student debt.<br /><br />2. A minority of this debt is private held, but the majority is owned by the federal government.<br /><br />3. Debt is normally deferred while a borrower is still in school<br /><br />4. In a normal pre-pandemic year, borrowers were making their IDR payments. (or in some cases no payments, and default was pending.)<br /><br />5. The total of IDR payments was (I am just guessing) maybe 5% of the total owed. Let's call that total $80 billion.<br /><br />6. If all debts are forgiven, the government loses $80 billion a year.<br /><br />Does that strangle the taxpayer? (leaving aside the question of whether it is fair)<br /><br />As you can tell, I am not a fan of the recent protocol which describes all government programs in 10 year blocks. I look at the annual cost.<br /><br />Comments welcome! Bob Hertzhttps://www.blogger.com/profile/08889826739646491269noreply@blogger.comtag:blogger.com,1999:blog-4202804909803677380.post-84413849272309213502023-01-12T21:37:02.266-08:002023-01-12T21:37:02.266-08:00College degrees aren't worth the paper they ar...College degrees aren't worth the paper they are printed on, otherwise this wouldn't be such a disastrous issue. Anonymousnoreply@blogger.com