PPI’s Student Debt Investment Fund (SDIF) policy proposal was picked up by Kay Steiger of The Raw Story:
A new proposal published last week claims that creating a new secondary market would to “deflate” the so-called student debt “bubble” by repackaging both public and private student loans for banks to buy and sell.
“The student loan bubble is about to burst,” the authors write in the proposal, released by the center-left think tank Progressive Policy Institute (PPI) last Tuesday. The authors warn that while this proposal wouldn’t tackle the problem of rising student tuition, they do insist this would help tackle the problem of student debt that’s already been taken out, which has recently reached the $1 trillion mark and surpassed both credit card and auto loan debt in America.
“Young college grads have been bearing the brunt of the declining real wages over the last decade, they’re taking jobs that are less skill for less pay, and there’s a hollowing out of those middle-skill jobs,” Diana Carew, an economist at PPI and the lead author on the proposal, told Raw Story. “At the same time, tuition has been rising very rapidly, so they’re less likely to be able to pay in the long term.”
Read the entire article.
