Politics Student debt: It's the interest stupid
Fiscal Financial Statements 2021: Confederation in the previous year does 215 billion euros of new debts
Finance Minister Christian Lindner presents new numbers in the Bundestag. Overall, the state deficit was 4.3 percent last year. © Photo: Imago / Xander Heinl Federal Finance Minister Christian Lindner (FDP) The Confederation included new debts in the financial year of 2021 new liabilities of more than 215 billion euros. The credit framework, which still established the large coalition, was 240 billion euros.
The constant, unrelenting, day-by-day buildup of interest is the beating heart of student debt. Its time Congress put a stake in it.
Borrowers will repay more than $240 billion in interest over the next 10 years. Getting rid of it would mean a lot of forgiveness. The COVID-19 moratorium on interest payments has provided borrowers with more than $100 billion in relief or about $4 billion to $5 billion a month, although). Ask any student borrower - it's been a big help. Ending interest permanently would also make overall student debt reform much easier. The Education Department struggles to ease the burden on students by promoting its Income Based Repayment plan. This plan reduces monthly principle payments by extending the time students have to pay. But adding time only builds up the interest offsetting the gain from lowering principal payments.
Brianna Kupfer murder: UCLA student remembered as 'brighest part of anyone's day' in large vigil
A large crowd of saddened mourners gathered Thursday in front of a luxury furniture shop in Los Angeles to remember the life of a 24-year-old woman who was killed while working inside in a crime that has left the city shaken and residents worrying about their safety. The memorial in front of the Croft House came a week after Brianna Kupfer was stabbed to death in what appeared to be a random attack. On Thursday, hundreds of people brought flowers, candles and images to remember the University of California, Los Angeles graduate student.
This is also an equity issue. The students who fall behind in their payments suffer the most. While the racial disparities in student borrowing, delinquencies and defaults, are well documented,now show that Black and brown borrowers see their student debt grow the most: only few years after graduation, the black-white debt gap . As you read this, more than are seeing their loan balance balloon as unpaid interest capitalizes. But there is one congressman who is ready to raise a stake to the beast. Rep. Joe Courtney (d-Conn.) has to allow student borrowers to refinance their loans at zero percent interest. Despite it enjoying bipartisan support, the battle is far from won.
NWSL Board of Governors approves structural changes of Washington Soccer Properties; Y. Michele Yang's shares
The NWSL board finally weighed in on the ongoing power shift between Washington Spirit ownershipWith preseason approaching for the league on February 1, it was reported by The Athletic that Kang had obtained control of voting interest within the club through agreements with other minority investors. By converting their debt into equity, she potentially gained the right to vote on franchise matters -- like a club sale from Baldwin to potential buyers other than her. The bold move led to meetings with the NWSL Board of Governors on the validity and vetting processes.
On the flip side, getting rid of interest denies taxpayers their rightful return from lending money to students. It's not fair. But there is another way to ensure a return to taxpayers. The government could invest the principal paid by students to earn a return. A version of this comes from Social Security where payroll taxes are invested in Treasuries to create a return. The government could invest student payments in a bond issued by the Federal Reserve. When the bond comes due the Fed returns principle plus interest to the government.
But why would the Fed involve itself in student debt? Isn't the mission of the Fed to foster employment and price stability? The answer is it already deep in the thicket of student debt. it is responsible for the Consumer Financial Protection Bureau (CFPB), which protects consumers from rapacious financial institutions. As such the CFPB educates and defends students with debt. Furthermore, the Fed's research department already devotes much time and data collection to aspects of student debt. It has some of the best-known experts on the subject.
Recently,wrote to President Biden asking for debt forgiveness. If the president gives them a meeting, zeroing out interest with investments of principal should be discussed. Unlike other proposals, it would protect both the lender and borrower.
is a former International Monetary Fund economist whose professional work involved restructuring South American debt and marketing sovereign debt loans. He founded the Hildreth Institute dedicated to restoring the promise of higher education.
17-year-old fatally shot in chest near his high school: Police .
A 17-year-old boy has been gunned down in the middle of the afternoon near his Philadelphia high school. Christopher Braxton was found lying on a road with gunshot wound to his chest at about 2:54 p.m. Wednesday, police said.