Quote:
Originally Posted by Vermilion Villager
You kind of do not understand the student loan debt issue. First, the government isn't paying off anything. If a student took out $100,000 in loans that student has paid that $100,000 back.... it's the extra interest is occurred after 10 years of payment on a federal loan that the federal government is forgiving. Again it does not cost in the US government one penny.
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I'm afraid that's not an accurate statement.
The USA operates on a Deficit Budget, which means every dollar it spends, has interest attached to it (it cost money to borrow money).
A Student Loan is not much different than a Mortgage Loan. You borrow the "principal" (which has already been borrowed by your lender). You pay back the Principal & the Interest, over 30 years ... just like a student loan.
There is no such thing as "extra interest".
The US Government BORROWED the money they gave out for student loans and has been paying interest on that money, since the student borrowed it from them. "Forgiving Loans/Interest" cost a fortune.
If you have any doubt, call your bank and ask them if they'll "forgive" the interest on your home mortgage. Let me know how you make out.