How to free hardship cases of unaffordable education and other loans.

Discussion in 'Finance' started by Kode, Nov 30, 2018.

  1. Kode

    Kode Well-Known Member

    Feb 5, 2016
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    About 45 million students are relying on borrowed money to pay for their college education, each owing an average of about $28,000 in repayment and the default rate is 11.5%.

    Bad debt can be bought for an average of 3¢ on the dollar.

    If the average loan amount is $28,000 for defaulted loans and they can be bought for 3¢ on the dollar, that means $3,000 can buy $1 million worth of bad debt for about 35 borrowers who can't pay their debt.

    If the total in default is about $150 billion, 3% would be about $4.5 million. And a smaller amount may comprise hardship cases needing relief.

    Someone could do as Steven Colbert did and buy that debt and then forgive it. A Go-Fund-Me page or other call for donations could be made and whatever is received could be used to buy bad debt for hardship cases.

    Just an idea.

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