How to Solve the $5 Trillion Student Loan Crisis


Nevada Senate Candidate – Barry Cameron Lindemann

Nevada US Senate candidate Barry Cameron Lindemann proposes using the federal funds rate to reduce student loan repayments to ensure reasonable debt levels.

Am I saying it’s the government’s fault? Most.”

—Barry Cameron Lindemann

LAS VEGAS, NEVADA, USA, September 23, 2022 / — No one takes student loan debt with the idea that they will default on their loan. It’s quite the opposite. People believe that with their new education they will be able to pay their student loan debt and all the other bills that life throws at them on their way to great success.

Think about a few things about your student loan. If you graduate in a poorly performing economy, how are you supposed to get paid employment? If you’re not gainfully employed in this struggling economy, how are you going to pay off your student loan? Also, who or what is responsible for the poor performance of the economy? If you can’t pay the debt, what are the penalties? Who or what sets your interest rate, and who or what holds your loan?

The answer almost always has to do with the government, its action or lack thereof.

Here’s an observation: student loan debt swells when easy government money prevents institutions from competing to attract students. The government keeps lending no matter what (sounds like the real estate crisis of 2008), and tuition fees are not kept under control by the competition.

The current idea of ​​canceling student debt is bad (it hurts me to say it because I still have student debt from 2015). All it will do is add more debt to the national balance sheet and push the United States deeper into recession, or worse.

Immediately, the government should take these steps to make student loan repayments manageable.

1.) 98% of all student loan funds are borrowed or held by the federal government. This is analogous to large banks borrowing money from the government for their lending activities. Unlike the big banks, you and I can borrow money at the federal funds rate of 3.25% (as of this writing). The government shouldn’t find ways to rob former students emerging in a poor job market by slapping them with a 7% interest rate when the borrower could be at the 3.25% federal funds rate. . Smaller payments allow for a manageable life in times of economic downturn and inflation. This is what the government should do for us.

2.) Penalties imposed on student borrowers should be forgiven. All penalties. Government is eternal. As long as the loan is repaid during the amortization period, no penalty should apply. All amortization periods must be 20 years or more.

3.) No borrower should pay more than the loan principal and interest. Once a borrower has made enough payments to repay the principal and interest, the loan should be marked as “repaid”. To keep the government in check, the government should NOT be allowed to access the interest generated by your payments until the loan is paid in full.

The government organizes itself for profit, that’s really what happens. It’s wrong. Bad government policy creates a bad economy that students descend into after graduation. Then, students are penalized for not being able to obtain gainful employment and suffer the penalties associated with nonpayment of student loan debt.

Am I saying it’s the government’s fault? Most. do it Payment reasonable terms. The government is not a banker and does not need to make a profit. Government is perpetual.

Barry Cameron Lindemann
2022 US Senate Candidate Nevada

Barry Cameron Lindemann
Barry Lindemann Senate Seat
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