Student loan lottery
could help ease debt
Repaying student loans is an extreme hardship for many young adults who are struggling to make a living and raise a family. These loans are inescapable. The government even has the power to deduct payments from one’s Social Security benefits. What about holding a student loan lottery to pay off or pay down some of these loans?
Graduates who elect to participate in the lottery would add $1 to their monthly loan payment and that money would be placed in a pool ($1 per chance). Every month a drawing would be held and multiple winners would receive $25,000 that could only be used to pay down their student loans. If $25,000 exceeded a winner’s loan amount, the balance could be paid out in cash. For $1 or more a month, it would be a no-brainer for a graduate to have a chance at having his or her student loans reduced or eliminated.
About 44 million students owe $1.3 trillion in student loans. The average student owes about $30,000. If there was an 80% participation rate in the lottery, the monthly pool would total $35 million before expenses. Assuming 10% for expenses, that would leave enough money for 1,260 people to win $25,000 every month.
While it wouldn’t make much of a dent in that $44 million debt, it sure would make more than 15,000 folks very happy every year by ending their ongoing nightmares.
Any solution to the student debt crisis that doesn’t use taxpayer dollars is a win-win for everyone.