They aren’t just government loan guarantees any more: They’re government loans. The government has essentially taken over the undergraduate loan business.
I don’t think the political implications of a significant fraction of 23 year-olds owing $50,000+ to the Federal government have been fully thought through. For one, it’s a huge policy lever. We’ll forgive your loans or reduce your payments if...
I'm kind of fond of the idea of people paying a percentage of their income after they get their degree and for X number of years.
I think that's a fantastic idea. For needed professions, it could be X - Y number of years. Inexpensive and attainable education would be a good thing, I should imagine.
This is sort of how it works in the UK. You pay 9% of what you earn over £X for 25 years (with X and other details like interest depending on when you started borrowing).
In theory, this stops when you pay off your loan, but the most recent estimate I know of[0] predicts that 60% of graduates under the current system will never get there, so while it's technically a loan, it feels more like a graduate tax.
[0] http://www.telegraph.co.uk/education/educationnews/10747315/... (2014)
The x-years and y-% could be based on their future earnings. A sort of tiered system with “marginal” rates. I wonder if such a system could exist.
Re:The Great College Loan Swindle
by sordidasset on Saturday November 04, 2017 @03:01PM
(#15626382)
Is this a tongue-in-cheek discussion you guys are having about taxes?
Also, we can expect income-based repayment to become the norm, since most will not be able to afford the payments