We could've forgiven the entirety of every single student loan yesterday, but instead -- Fed to Inject $1.5 Trillion in Bid to Prevent ‘Unusual Disruptions’ in Markets

submitted by magnora7 from (wsj.com)

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[–]aewrgbaerbhr 5 insightful - 1 fun5 insightful - 0 fun6 insightful - 1 fun -  (3 children)

There is some comparison. They are purchasing the bonds back at current rates, which are abnormally high due to the market drop. In a few months when bonds go back to normal, the banks will use that cash to buy back into bonds at a lower price.

[–]ManWithABanana 4 insightful - 1 fun4 insightful - 0 fun5 insightful - 1 fun -  (2 children)

Okay. So it's more like a fractional giveaway of money to the banks then.

Also, the total amount of student loan debt is apparently 1.5 trillion.

I would certainly rather see student loans get some fraction of free money, than banks directly.

[–]danuker 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

Don't worry, a fraction of that fraction will get to the student debtors... in the form of bonuses for taking on more debt!

[–]realister 2 insightful - 1 fun2 insightful - 0 fun3 insightful - 1 fun -  (0 children)

nobody is getting free money though, banks take on huge risks still. These are loans that has to be paid back.