July 1, 2016
Democratic presidential nominee Hillary Clinton has released a new “Initiative on Technology and Innovation” that consists mostly of throwing money at various programs that she imagines would be good for the economy. Notably, however, Clinton would add yet another way for the federal government to lose taxpayer money on student loans: loan deferment and forgiveness for young entrepreneurs.
The plan would allow young entrepreneurs, along with their “first 10 or 20 employees,” to put their loans into deferment for up to three years. Deferment allows a borrower to temporarily stop making payments on his loan; interest may accrue during this period depending on the type of loan. Currently, borrowers may put their loans into deferment for limited reasons, such as graduate school, military service, or unemployment.
After five years, Clinton would forgive up to $17,500 in loans for borrowers who “launch new businesses that operate in distressed communities, or social enterprises that provide measurable social impact and benefit.”
Read the full article at Economics21: Hillary Clinton’s Absurd Student Debt Forgiveness Plan