Given the dire state of the economy, immediately lower the interest rate on ALL student loans to 2%. The banks will still make money, and billions of dollars would be freed up, which would have a substantial impact on spending.
Why is this important?
Student loan debt has reached a trillion dollars. The interest rates make it virtually impossible to pay them off in a timely manner. In 12 years I have paid over $60,000 on these loans, and over $40,000 has went to interest. It shouldn't take 30 years to pay off 8 years of college. The government guarantees these loans, and the banks, that have recorded record profits 3 years in a row, are more than happy to service these loans. The banks have done nothing to earn this business, yet have sucked billions of dollars out of the economy.
