A city, county, or state public bank, chartered on the Bank of North Dakota (BND) model, can provide great relief to student debt by refinancing existing loans, and offering favorable terms to students residing in its jurisdiction.

The BND has such a loan program.

The Student Debt burden has ballooned in the last 20 years to a staggering $1.7 TRILLION, straddling 45 million Americans with about $40,000 in debt per person as they enter the job market.

The effects of this massive debt burden are broad and deep, as many become extremely hesitant to start families, fewer people are seeking a college education, student loan defaults are on the rise ruining their credit standing, increasing the number of unemployed, and driving people into poverty. Further, it adds to income inequality and social unrest as minority groups suffer disproportionately.

Like the Bank of North Dakota and the Sparkassen community savings banks of Germany, a local city, county, or state public bank can purchase the student loan contract from the finance institutions that are charging higher interest rates, and refinance that loan at a much lower interest rate, reducing minimum payments and the debt burden.