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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[–]ManWithABanana 11 insightful - 2 fun11 insightful - 1 fun12 insightful - 2 fun -  (3 children)

The Fed is giving out 1.5 trillion. Some combination of

  • Making loans
  • Purchasing Treasuries (IE, buying back their own debt)

That's not comparable to giving away money to clear student loan debt.

[–]aewrgbaerbhr 5 insightful - 1 fun5 insightful - 0 fun6 insightful - 1 fun -  (2 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 -  (1 child)

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.

[–]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.