[Atlas Sneezed]

Immediate write-off of 30% of outstanding balances, 25% loan forgiveness to the borrower, 5% as a fee to the educational institution where the loan originated to collect the remaining 70%.

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I like the spirit of punishing the schools, but to be fair, I’d give 100% of the loan to the institution, and let them decide at what discount to settle with the borrower. The deadbeat borrower doesn’t deserve a freebie before the negotiation starts.

[Vigilanteman]

The deadbeat borrower doesn’t deserve a freebie before the negotiation starts.

Morally, you may be correct.

But politically, something like this has to happen to give it a realistic chance of passing.

Think of it like a credit card company who has been charging at way above market interest rates and fees for years and then decides to settle for 70% as an attractive alternative to default.