To: President Donald Trump, The California State House, The California State Senate, Governor Gavin Newsom, The United States House of Representatives, and The United States Senate
A Solution for Student Debt
Fixing Student Debt: A Two Pronged Approach. Step 1 is to permanently lower student loan interest rates to between 1 - 3% for all borrowers (including those who took out loans before the Obama Administration). Step 2 is to provide a 5 year moratorium on paying back student loans (without collecting further interest). This will give our generation time to gain real work experience and move us back into the middle class.
Why is this important?
I doubt that H.R. 4170 will pass, so I have a better idea on how to deal with student debt and the staggering 54.3% unemployment/underemployment rate for recent graduates.
My solution is to permanently lower student loan interest rates to between 1 - 3% for all borrowers including borrowers before 2011 who are paying a 6.8% - 8.5% interest rates (the new 3.4% doesn't apply to older borrowers).
In conjunction with lowered interest rates, provide a 5 year moratorium on all student loans without collecting interest. This will provide major debt relief to those under 30, allowing salaries to rise while the most vulnerable in society get some time to get real work experience. Once the 5 years are up, these students will have salaries large enough to pay back all of their debt without further hurting their long-term purchasing power. This solution also emphasizes full debt repayment rather than relying on the public service student forgiveness options which only further exacerbate public spending.
I believe my solution will not only fix the student debt problem, it will also kick start the economy and prevent the Millennial generation from falling even further behind.
My solution is to permanently lower student loan interest rates to between 1 - 3% for all borrowers including borrowers before 2011 who are paying a 6.8% - 8.5% interest rates (the new 3.4% doesn't apply to older borrowers).
In conjunction with lowered interest rates, provide a 5 year moratorium on all student loans without collecting interest. This will provide major debt relief to those under 30, allowing salaries to rise while the most vulnerable in society get some time to get real work experience. Once the 5 years are up, these students will have salaries large enough to pay back all of their debt without further hurting their long-term purchasing power. This solution also emphasizes full debt repayment rather than relying on the public service student forgiveness options which only further exacerbate public spending.
I believe my solution will not only fix the student debt problem, it will also kick start the economy and prevent the Millennial generation from falling even further behind.