How the next stimulus can help 42.8 million Americans (hint: it has to do with federal student financial aid).

Right now, there are 42.8 million people who owe a collective $1.515-trillion in federal student loans. Rather than forcing the federal government to write off some or all of this debt (which disproportionately benefits those who attended college), the federal government could reset all student loans to the rate that the Federal Reserve charges banks for lending money (currently zero to 1/4 percent). Doing so would have a profound impact on tens of millions of borrowers in the short- and long-term. Reducing the interest rate would not preclude students from participating in Income-Based Repayment plans, becoming eligible for Public Service Loan Forgiveness, or receiving forbearances which are sorely needed today in light of the economic consequences many borrowers face because of the Covid-19 pandemic. While there is a cost to reducing the interest rate, this type of relief does not absolve a borrower from their loan responsibilities, which makes it fair to all taxpayers. In the end, President Trump and Congress can provide sorely needed relief for one-out-of-six adults in the United States.