The President has dated that he will cancel $10,000 dollars in student debt of those making under $125,000 and $20,000 for those who had pell grants.
I’m not going to get into if cancelling the debt is right or wrong. I have this question that I don’t know the answer to. Are banks the true holders of this debt and if they are, does the government have to get this money from the treasury or by borrowing (bonds come to mind)? If the government owns the debt why isn’t student debt a plus on the balance sheet ( or a way of reducing the national debt as the debt is payed back)
* I semi lied, the cancellation of student debt is not inflationary.
No comments:
Post a Comment