Comment: That proposal is an

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That proposal is an

Here are my problems with it:

The first problem that comes to mind, is the $1.2 trillion in student loan debt could not be paid out immediately. Even if the U.S. were to nullify the $2.4 trillion owed to the Fed, it's not an instant savings of $2.4 trillion. That means, a payment plan would have to be drawn up by the U.S. to the creditors. Which could be a difficult task unto itself, to find a plan that all creditors would be content with.

Second, this is only something I could get behind if the government then dropped all involvement in the school loan business. Can you see that happening? I can't. So then I begin to think this is just a terrible idea, as I think of the incentives this gives future students and the unintended consequences -- students become even more reckless as they will probably be expected to be bailed out in the future as well; school prices skyrocket even more. Warren would absolutely not support the end of government involvement in student loans, she would want tuition to be "free" for all students.

And third, this bill proposal underestimates the power and tentacles of the Fed. Most of Congress is at the mercy of TPTB and especially the President -- which this would never get through him. Powers like the Fed approve of Obama, they take care of him, Obama would never bite back.

All in all, there's too many negatives to this.