To the editor:

I have pondered the dilemma of canceling the federal student loan debt. There are good arguments both for and against this move, which apparently the president can do with a swipe of the pen. Who knew?

Some people say the money was borrowed and must be repaid.

It’s quite a dilemma to compromise somehow and please most people. My perspective is a bit different from many others, and maybe my approach would be perhaps a bit more amenable to all involved.

We could come at this problem from a completely different direction. Lower the interest rates. How about dropping them to a whopping 1%?

Let us look at the numbers and see what a difference this would make.

We will use a student loan of $30,000, which I understand is the average loan today. You can check Google yourself.

This is paid off over 15 years, a number which is arbitrary, but less than average.

We will look at monthly payments beginning at the inception and concluding 15 years later.

I used an online loan calculator for the numbers:

If 30,000 is borrowed at 7% for 15 years, the monthly payment is $269.65.

If 30,000 is borrowed at 1% for 15 years, the monthly payment is $179.55.

The difference is $90.10 per month, saving the borrower some $16,218 over the life of the loan.

Or, 30,000 borrowed at 1% for 10 years results in a monthly payment of $262.81, eliminating five years of payments.

This saves the borrower some $16,979.80 over the life of the loan.

Dale Randolph


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