Student loan forgiveness is being taken seriously right now by the bourgeoisie.

The Federal interest rate going near 0% has led to a massive boom in housing construction. Student loan deferment has led to many people saving up for a down payment on a house. The housing market is carrying the US economy right now.

If student loan deferment ends, this space that Capital found for expansion will disappear. There will be an immediate crisis.

Also, the effort to privatize student loans has been a failure. Betsy DeVos has been the Secretary of Education most dedicated to privatization. She killed the Perkins Loan, which has led many new students to private loans.

Although, after her reign, 92% of public student loan debt are still held by the Department of Education. It is unlikely that the Biden SoE will be more successful at speeding up the process. Capital is in crisis now.

Forgiving public debts is a method of privatization in America, where a culture of indebtedness exists. They want everyone with public student loans to take out private mortgages, owned by JPMorgan, Citigroup, etc.

I'm not saying student loan forgiveness is good or bad. It is good for me. But it serves a purpose that we should understand.

  • DasKarlBarx [he/him,comrade/them]
    ·
    4 years ago

    they are able to afford the $2,000-$5,000 down payment for a house.

    Those down payments are offset by higher monthly payments which if people countiue losing jobs and wages don't increase it won't matter if you have a house now because you'll lose it down the line.

    Also, if the instrest rates aren't fixed people are going to be crushed when they're raised and it'll be '08 all over again .

    If student loans are forgiving,

    That's true, but I dont see full loan forgiveness happening any time soon. I know it's being talked about and MAYBE they'll sneak in like 10% forgiveness up to a certain amount of you're up to date on payments into the next stimulus (if there is one). I just don't see any american gov doing anything besides allowing the richest to continue looting what's left of the empire while it falls apart.

    • PhaseFour [he/him]
      ·
      4 years ago

      Those down payments are offset by higher monthly payments which if people countiue losing jobs and wages don’t increase it won’t matter if you have a house now because you’ll lose it down the line.

      Also, if the instrest rates aren’t fixed people are going to be crushed when they’re raised and it’ll be '08 all over again.

      I agree entirely. I feel like we're speed-running the last housing bubble. I can see Democrats forgiving student loans to fuel the bubble.

      I just don’t see any american gov doing anything besides allowing the richest to continue looting what’s left of the empire while it falls apart.

      I agree. I just think student loan forgiveness alongside a housing bubble may be the best source of profit. No one makes money off public student loans. It just pays off the US debt, which no one cares about. If even half those student loans became mortgages, investors would be real happy.