LogFAQs > #923794827

wolfy42 posted...

The loan situation though is pretty simple, currently higher learning in the US is a for profit situation. Much of the "loan debt" in fact is not actually even based on initial costs for the loans, but based also on interest since the loans were accrued, defaults penalties etc.

As long as they are still loans that you are expected to pay back, they really can't be interest free though. Otherwise whoever the lender is would be losing money every year on every loan. If it takes you 10 years to pay off a loan, that's 10 years of inflation that devalued the money you were given.

Now, the easiest way to do this, assuming no subsidies, would be to tie the interest rate to inflation. No private lender would be willing to do that, but the government could provide loans and not lose their backs on it, while providing at least some relief to the students.

But that's assuming you don't just completely overhaul the entire system, because providing low interest loans would be akin to putting a band-aid on a bullet wound at this point. Sure, it might help a little, but there's larger underlying problems here.
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