Bailout may be the word of the year (if it isn't "change"). The government is bailing out wall street and banks and financial industries. The housing market is horrible, mortgages are crazy, and home values are sinking. But there is an efficient solution to ease our economic turmoil.
The US Government needs to pass legislation that will require any citizen paying back student loans should have the benefit of NO INTEREST RATE. I am not going as far as saying eliminate all student loan debt, but the interest rate is a moderate solution.
I know many of the readers of this website have student loans, are accruing them, have paid them off, or know of someone who has taken out student loans. Its all part of the American Dream. Go to college, get a good job, start a family, etc... Cost of college education is almost not a big deal to most. Federal and state loans are out there for those who can't afford to pay out of pocket. There are private loans. Do whatever it takes to get that piece of paper in 4 years.
I am 25. Many people of my generation were bamboozled into the thinking of "if i go to college, do well, i'll graduate and get a great job and make good money." WRONG. This is a myth. Its time to tell the truth. It took me a few months to get a job, and the pay was not what i was expecting. I can't, and most of my friends can't, afford to move out of their parents' home.
Most of my monthly payment for my student loans go directly towards interest. I'm hardly paying what i borrowed. This is why I cannot afford to save enough to buy a condo or house with my partner.
If interest rates turned to zero, I would save 10 to 20 THOUSAND dollars. I could use that for a down payment on a house in a market where prices are low enough for a 20-something to actually afford.
Bailout student loan borrowers! Save the economy!