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bank puts debt on people
instead of people repaying it, the govt pays the debt
I get that it's only for public servants etc. and after 10 years, but is this not just a state subsidized money funnel to the bank? Shouldn't the root cause of the unrepayable debt be resolved instead of this?
All of these loans are backed by the US government, not a private bank. Forgiving then is just the government writing it off. The only private entities involved are the borrower and potentially the school.
Ah, that explains it. Thanks!
I've always wondered if there is some way to make a tax argument against these loans. Like they're an illegal tax.
Caveat. The private companies like nelnet and others are servicing the loans on behalf of the government but the loans are government backed.