"Modern Money Myths"
Quote:
Originally Posted by RightinNYC  Where would the money come from? No institution is going to give out money interest free. That means the government would have to end up paying tens of billions of dollars a year in order to fund student loans. Absurd. |
The idea ist that no interest would be paid on the loans, neither by the government nor the student.
A pool of taxes as a zero interest education fund would need to be accumulated.
Assuming that the education pool is not borrowed against by some dimented political entity, the volume of money, being reimbursed over time, could remain transparent, as a public keepsafe.
The reserve fund, being repaid in time, does not represent a financial loss or gain, except by those suits demanding that everyone bleed to their upper hand.
Those parents capable of funding college for their children out of pocket would find zero interest represents a major deferment of debt.
A second means of accumulating the pool of money, perhaps more controversial (a special exception), is to grab the federal reserve by the neck and direct it to print an interest free fund of fiat money earmarked for education loans.
My supposings are that the federal reserve was set up to keep the government from printing its own currency, charging interest, and thereby preventing it from forming a bureaucratic collective, more powerful than the private sector.
The federal reserve interest also holds the government fiscally responsible, as a corporation, for expenditures beyond its ability to collect taxes from its citizens.
Hopefully the spiteful laughter about the national debt did not harm anyone.
IMO an ineptitude to form such a fund follows an assumption that the public does not collectively posess a single thing to keep itself afloat, and could not help itself even if it tried.
Either higher education is an important investment that should be made affordable by as many as possible, or it isn't.
Modern Money Myths 
Linear Mode
Main
Extras
