BILL HAMMONS FOR UNITED STATES SENATE AND COLORADO
STUDENT LOAN FINANCING
(Candidate Bill Hammons Platform Position)
Americans' over $1 trillion in student loan debt is indeed a drag on the entire economy, and our country's economic future, both short- and long-term, would be greatly aided by refinancing that debt at lower interest levels. I support using legislation to cap interest rates on student loans at no more than the interest rate on a 20-year U.S. Treasury Bond (a little under 2% as of this writing), thus effectively eliminating the private student loan market (which has proved to be predatory) and encouraging the growth of the Federal Direct Student Loans in its place.
I don't support raising income taxes to fund student loan refinancing, for the simple reason that I support the elimination of the income tax altogether. Also, in light of the fact that I support a Balanced Budget Amendment, I don't support new government borrowing to finance student borrowing which might or might not be repaid even with low rates and long repayment terms (I support doubling the typical repayment term to 20 years, at which point many college graduates might be sending their own kids off to college).
Instead, an American Permanent Fund funded by carbon revenue measures could be the source of this refinancing. Student borrowers almost by definition skew away from the top of the economic spectrum, and they could pay a little extra for gas and electricity in exchange for major debt relief, if they're lucky enough to have a car and a house.Federal refinancing could also apply to trade school loans in addition to traditional college loans, just as some prep courses are financed by loans from private lenders.