Since my subsidized loans had interest well below inflation, I decided to pay the absolute minimum possible payment on them for last 9 years. In that time, they have lost 37% of their real value just through inflation alone.
I always felt bad for my friends who insisted on paying off their loans as soon as possible. And now, mine are about to disappear completely for free!
The way to a happy and successful life today is to make sure never to work hard at anything so that you qualify for all the goodies
No matter how many threads you say this in, it isn't going to be true.
Governments, businesses, individuals and reckless borrowers of all stripes - not just students - have been massively rewarded by our current policies from both the left and the right where there is no longer accountability. We make money free so the market doesn't crash. This is so sad and leads to the cynicism and distrust so many of us have towards our institutions today.
And even if that were the case, then interest on that debt would easily cancel the effect out, since interest far outstrips inflation on many student loans.
Arguing that student loans are "forgiven" and that no action needs to be taken because deflation is solving the problem, despite the crushing weight of that debt on so many borrowers even when they're trying to work it off, is twisted logic.
Exactly right! A loan is a time capsule of prices. Wouldn't you rather buy a house 30 years ago than right now?
> interest far outstrips inflation on many student loans
Maybe on some, but not on the federally subsidized student loans we are talking about here. My interest is something like 2.25% (not including the 2 years payments have been frozen). Even when inflation was pretty stagnant, you would be hard pressed to find many years below that.