If you're making $50k a year you net $3,350/mo. 10% of that is $335. So each month you're paying $335 against the $1500 in interest that your $250k loan demands. How is this in any way helping? At the end of the 25 years[0] your balance is written off, right? But then it may become _taxable income_[1]. So suddenly you're writing off $1,000,000 plus your salary, and that hits you with a $487,000 tax bill[2]. Hopefully you've been doing a great job with your savings, because if you can't pay that tax bill the IRS charges interest daily on your outstanding tax bill and associated penalties[4], not to mention they'll demand that you sell off any meaningful assets[3]. Then, of course, this causes another economic crises because 25 years from now, we suddenly have a whole slew of people who are 50 and no longer have their life savings, and may not have their house, depending on how the IRS is operating 25 years from now.

It looks to me like PAY-E is _exactly_ like a student loan in the first place -- a great vehicle for pushing your debt responsibilities into the future with the hopes that some other program will save you. And in this scenario, how are you supposed to attract a mate, have a family, a home, or any sort of hope for the future? Sure, you made a screwed-up decision when you were young and you should be punished for it, I totally agree. My question is, does the punishment fit the crime?

[0]https://studentaid.ed.gov/sa/repay-loans/understand/plans/in... [1]https://studentaid.ed.gov/sa/repay-loans/understand/plans/in... [2]https://pocketsense.com/taxes-1-million-dollars-8063543.html [3]https://turbotax.intuit.com/tax-tips/tax-payments/what-is-th... [4]https://www.irs.gov/businesses/small-businesses-self-employe...