Loan forgiveness

Inflation effects different people in different ways. If the inflation rate over the next ten years is 5% then a person with a $10,000 loan will pay it back with deflated dollars which today would be worth $6,100. If you are retired and have $10,000 in your bank in ten years that will be worth $6,100. In the case of forgiving loans, like what is propose for students who are getting a good education and thus able earn higher wages, are passing the cost of those loans onto retired people. Some person who skips college and uses $10,000 to buy equipment to start a business will also pay for those student loans but there is no loan forgiveness plan for them. It is the old adage of rob Peter to pay Paul and the government decides who is Peter and who is Paul. According to a new report from the Georgetown University Center on Education and the Workforce (CEW), adults with a bachelor’s degree earn an average of $2.8 million during their careers, $1.2 million more than the median for workers with a high school diploma.