Justin Greywolf, candidate for Washington states 8th Congressional district is proud to announce that he is working closely with Eric Jones (D), candidate for Ohio's 6th Congressional District, on a realistic plan to help people saddled with crippling debt from Federal Student Loans.
This initiative is called FedLoan0 which, rather than eliminating debt out of hand, provides a way to make it easier for students to see a reduction in their total amount owed without raising any taxes on the front end since the taxes were already paid.
After one has been paying on a student loan for 20 years and finds that they owe more now than what they originally borrowed is the government making a profit off of education
The plan is simple:
- Set a 0% interest rate for all future student loans.
- Erase any interest owed on existing loans.
- Apply all paid interest to the principal, potentially paying off the remaining debt.
This simple change can save the average student $12K over the life of their loan, more than $100 monthly.
The benefits outweigh the potential loss of revenue for the government.
"What motivation is there to lend at 0% interest?" The federal government can regain that money in different ways. Future income tax revenue is increased when you have a more educated workforce. Private lenders cannot benefit from future earnings
Educated people are less likely to be incarcerated or on welfare. They're more likely to have health insurance and car insurance and spend more money locally which can help economic growth.
This is just one of the initiatives that Justin is working on with other Congressional candidates to help real people with real problems with real solutions.