You mean the govt. contracts private companies to process payments? Sure. But the loans are all owned by the govt., not by private institutions.
"What do you think about just converting the loans to interest free? That's the part that I find most objectionable as private institutions are making generous profit for not really doing anything." <-- But doing this wouldn't cut out the need for processing
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So, it looks to me as if you thought the interest on loan debt goes to private companies, which isn't right.
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Fair enough, that was poorly written. Trying to cram into 280. -Interest is a huge burden. Forgiving it is less expensive than forgiving the entire loan and would help many many people -I find charging interest on these loans incredibly objectionable given the predatory -
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- Private industry built off this system.
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I'm fine with forgiving interest but it has nothing to do with third-party payment processors. That interest goes to the government.
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Sure, there are two separate points that I conflated in my tweet. -Interest forgiveness as opposed to complete forgiveness given the incredible cost of total forgiveness. -System has generated an immense amount of predatory behavior.
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I'm fine with cracking down on predatory behavior but it in no way is responsible for the student loan crisis, thus is a red herring in the discussion of loan forgiveness. Now, we are done.
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Ok, man. I never said it was responsible for the crisis. I said it was the most objectionable part.
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I just wish you would "doubt that" more.
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It would eliminate the private companies doing the servicing, making generous profits, and engaging in predatory behavior that justified regulation that is currently being eroded. It's an industry that draws predatory companies like flies to shit.
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A) It would NOT eliminate them at all, people make payments to pay down the principal of their loans. B) You have zero idea whether they are making "generous" profits. C) It's not clear what the "predatory behavior" is. The govt. made the loans.
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In other words, every single piece of your case falls apart at the slightest touch.
End of conversation
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