Quote:
Originally Posted by wdmso
Like I said republicans are trying to twist this
Posted from my iPhone/Mobile device
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THE HILL Former Treasury Secretary Larry Summers on Monday cautioned the Biden administration against extending the moratorium on federal student loan repayments and knocked “unreasonably generous student loan relief” he said could worsen inflation.
Summers rejected comparisons between student debt proposals and other instances in the recent past in which the federal government intervened with economic relief measures.
“There is no analogy with bank bailouts. Student loans are grants that cost the government money,” Summers said. “The bank bailouts were loans at premium interest in which the government turned a profit.”
Summers also noted that he was “not enthused” when the federal government offered “Paycheck Protection Loans” to small businesses during the economic upheaval of the COVID-19 pandemic.
“But, at the time it was extended, the economy was in the worst free fall in a century. Now, job openings are at record rates,” he added.
“I think the best way to relieve student debt would be to allow it to be discharged in bankruptcy,” Summers said. “I’d support this reform. It would also penalize other private creditors, unlike government debt relief that would in part subsidize them.”