If he borrowed $116,000, never paid any principle, after 15 or so years, he’s at $218,000. That’s just north of a 4% interest rate. If he made any payments at all, the rate goes up.
The Fed invents money from thin air. Why aren’t we offering student loans at the prime lending rate? Essentially, you can borrow it from the magic pile of free money, but you will pay it back with a token interest rate.
That’s certainly better than Warren’s plan to just wipe away the debt of the people who didn’t save for College or in fact pay for any of it as they went.
I worked A LOT in college. Yes, it was much cheaper in the late 80s but back then I didn’t qualify for student loans because my dad just barely made too much money. Of course, he couldn’t pay for it either because he was in debt to his eyeballs, so either I worked or I didn’t go.
*I meant federal funds rate, not prime rate*