Bill Maher had a recent segment on why we shouldn’t be celebrating obesity. Spoiler: it’s life threatening.

It reminded me of a discussion I had with a Personal Trainer 10 years ago where she indicated that you should love your body no matter what size it is.

Felt the need to get to the bottom of the student loan relief package offered by President Biden. The mass media is doing a terrible job educating the public on what is actually happening with this.

Here’s what we know for facts:

• About 45 million Americans owe about $1.75 Trillion in Student debt.
• The proposal is to forgive $10,000 for everyone making under $125,000/year and $20,000 for those receiving Pell Grants.
• The majority of student debt is held by the government.

Estimates from Left sources in the media report that the total amount forgiven is in the order of $300 Billion. Sanity check: 45 million borrowers X $10,000 = $450 Billion. But this doesn’t count how many people owe on Pell grants or how many owe less than $10,000. So let’s just say between $300 and $450 Billion will be forgiven.

Interest on Federal student loans is typically between 5 – 7%. If you take an average of 6% and say the average borrower pays off $10,000 in student loans in 10 years, the government gains about $3300 in interest for the life of the loan. 45 million borrowers X $3300 interest = $149B.

The total amount of money paid back in 10 years to the government = $450B + 149B = $599B. That’s about $50B per year – worst case – that we are not getting back what we loaned out.

I think my numbers are a bit high as they don’t include Pell borrowers. Plus, many borrowers owe less than $10,000. But we get an idea.