How long is "right now"?
Sounds like you need it. If it was that dire though- would you have to ask?
I can pay back the amount this year.
Not exactly for GME but taking out loans to invest has been discussed amongst my classmates.
I've definitely considered that. As of right now I have just been using money I saved up during my gap year to invest and use loans to live.
I've had some friends do it, made thousands off it, used that same loan money to pay off loans and have disposable income essentially.
How are we funding all of this? It's all fun and dandy giving out money, but it comes at a price. Taxes will go up. Inflation will go up. This is bad for every tax paying citizen of this nation.
The government would essentially give up that revenue stream from federal loans, and in turn we would all likely have to pay more taxes to make up for it, but even that may not be enough. Forgiving the loans would boost the economy sure, but eventually new borrowers will borrow more and more even though the forgiveness program could be pulled by a new administration at any time. Ideal scenario would be giving the program a timeline “Forgiveness of loans until 2030” for a certain amount each year, that may prevent over-borrowing, but honestly who knows.
| Academic year | Undergraduate | Graduate | Parent PLUS, Grad PLUS |
|---|---|---|---|
| 2020-21 | 2.75% interest 1.06% fee | 4.30% interest 1.06% fee | 5.30% interest 4.24% fee |
| 2019-20 | 4.53% interest 1.06% fee | 6.08% interest 1.06% fee | 7.08% interest 4.24% fee |
| 2018-19 | 5.05% interest 1.06% fee | 6.60% interest 1.06% fee | 7.60% interest |
Its interesting. You’d think by now we’d realize politicians don’t make good economists. But yeah, the thing is we aren’t. Most of government doesn’t know how to balance a budget and let alone manage cash flow.
