USA, position student loan debtors to be a force for climate action

We’re all likely familiar with the horror stories of the student debt crisis in the United States. Stories of borrowers paying on their loans for several years – and even decades – only to find their balances higher than when they began repayment. The student debt crisis is real, and it is holding this nation back. As student loan borrowers get buried deeper and deeper in debt, the world is slowly heating at an unsustainable rate and every resource – financial, intellectual, or otherwise – is needed on board to address the climate crisis. I’ve heard the argument that it is unfair to forgive Americans of their student loan debt for various reasons, many times stemming back to the core issue that the federal government will not be “getting anything in return”. I challenge the United States of America, and Richard Cordray as the Chief Operating Officer of Federal Student Aid, to change that narrative. I urge you to create a comprehensive forgiveness plan that addresses the student debt crisis and the climate crisis – two pressing issues of our time – and that stimulates the new green economy. Here is one, high-level idea: The United States of America creates a Federal “Green” Investment Portfolio based on the direction the nation wants to grow in the New Green Economy. Student loan borrowers are presented with the option to invest 10% of the value of their total federal loan debt into this Federal “Green” Portfolio for total debt forgiveness. If the borrower chooses this repayment option, interest rates are frozen and repayment begins. Loan debts are forgiven once the borrower hits the 10% mark. The federal government can use these investments to grow the nation’s green industries, including the green energy, green manufacturing, and regenerative agriculture sectors. Gains from the portfolio can be invested directly back into the portfolio – into the US economy – through business development, business expansion, research and development (R&D), etc. The federal government can grow the green economy through this portfolio by financing the expansion of existing companies; providing seed money for emerging start-up companies; and supporting R&D that addresses climate action through the various industries and sectors. This federal investment portfolio will grow itself, and the federal government will see repayment through returns realized through the expansion of the green economy; through the revolution of this nation – not through the detriment and exploitation of student loan borrowers. You’re dealing with borrowers that are largely part of a debt-burdened generation that is more conscious of its impact than generations before. A generation that consciously chooses to spend more money on goods that are local, socially responsible, and environmentally sustainable, regardless of its financial insecurity and instability. If you give us the option to pay this 10% as an up-front investment in your portfolio, we are free to spend the other 90% + in the green economy, growing this portfolio, over our lifetimes (thanks to our loan forgiveness). This plan can help solve the millennial dilemma. I urge the United States of America to give borrowers a reason to be excited about repayment, and you will see your returns for generations to come. - - - Photo by Visual Stories || Micheile on Unsplash