Bailing out Student Debt Isn’t Just the Right Thing to Do. It’s the Inevitable One.
Let’s learn from the 2008 subprime mortgage crisis
We are going to bail out Student Debt one way or another. What’s left is the Ws: who, what, when/where, why, and how.
Remember the 2007 subprime mortgage debt crisis? Predatory lenders had targeted people who had struggled to afford a home, and saddled them with higher interest rates. They told them it would be worth it in the long run, because owning a home was the best investment you could make in your future. They didn’t care if people could ever pay off the debt, as long as they could make monthly payments.
In 2019, we’re facing much the same problem, but with student debt instead. Predatory lenders have targeted people who would have struggled to afford college, and saddled them with higher interest rates. They told them it would be worth it in the long run, because a college degree was the best investment you could make in your future.
Back in 2007, eventually there were too many people who couldn’t pay their mortgages, so the banks holding those debts almost collapsed. The taxpayers ended up bailing the banks out. Another similar recession is coming, driven by student debt. The question is not if we bail out student debt. The question is how we do it.
📉 Will we go into a recession first?
🤷🏾♂️ Who pays for it?
💰 who gets bailed out?
If we pay off student debt with a wealth tax?
No student debt recession
The rich pay more of their fair share
Grads get a boost in this stagnant economy
If we bail out banks when recession hits?
Yes, we’ll be in a recession
All of us pay for the bailout
Banks get the payoff, so they can hand out more golden parachutes to their executives.
They’re proposing that the bail out go to those struggling with debt, not to the predatory lenders who created this debt crisis. They’re proposing that the wealthy foot the bill, not everyday Americans.