You might need to be registered at the site to get it. If so, here are some numbers to chew on:
- There’s about $598 billion of federal education loans outstanding and about $132 billion of private student loans outstanding, a total of about $730 billion.
- Only borrowers in active repayment and who are current on their loans would derive a cash flow benefit from loan forgiveness. While borrowers who are in a deferment or forbearance, delinquent or in default might derive a financial benefit from having their debt canceled, such forgiveness would not translate into increased consumer spending.
- About half of all private student loans are in repayment, and of those, about one-fifth are either delinquent or in a forbearance. So only about 40% of outstanding private student loans are in active repayment and current.
- Nearly 60% of federal education loans are in repayment, and of those, about a third are either delinquent or in a deferment or forbearance. So only about 40% of outstanding federal education loans are in active repayment and current.
- 40% of $730 billion is $292 billion.
- Most borrowers of federal education loans consolidate their loans to obtain an extended repayment, typically with a term of 20 years. Most private student loans also have a repayment term of 20 years. Assume an average interest rate of 7.0% on federal education loans and 11% on private student loans. Then the current annual payments on the education debt that is in active repayment total about $28.8 billion, 9.9% of the debt in active repayment and 3.9% of the $730 billion in outstanding debt.
That's my question. I already know the answer. NO.