Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

General Discussion

rateyes

(17,438 posts) Wed Nov 23, 2022, 10:54 AM Nov 2022

What about a negative interest rate?

Since Congress sets the interest rate on student loans, could they set a negative interest rate of say -25% and get loans basically forgiven that way?

Just an idea.

3 replies

= new reply since forum marked as read

Highlight:

What about a negative interest rate? (Original Post) rateyes Nov 2022 OP

Wouldn't that encourage everyone to borrow the max? MichMan Nov 2022 #1

Make it for all paused loans. rateyes Nov 2022 #2

Congress could pass anything, up to & including 100% forgiveness MichMan Nov 2022 #3

MichMan

(11,965 posts)

1. Wouldn't that encourage everyone to borrow the max?

Reply to rateyes (Original post)

Wed Nov 23, 2022, 11:09 AM

Nov 2022

Who wouldn't want to take out massive student loans?

If I take out $20k a year for student loans, I get a check for $5k to spend on anything I like? I wasn't even planning on going to college, but sign me up !

rateyes

(17,438 posts)

2. Make it for all paused loans.

Reply to MichMan (Reply #1)

Wed Nov 23, 2022, 11:17 AM

Nov 2022

Any interest has to be applied to principal.

MichMan

(11,965 posts)

3. Congress could pass anything, up to & including 100% forgiveness

Reply to rateyes (Original post)

Wed Nov 23, 2022, 11:31 AM

Nov 2022

So far they haven't

When the student loan program was included as part of the ACA in 2010, they intended for the interest payments to offset health care subsidies.

Reply to this discussion