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A comment on Student Loans a Lot Like the Subprime Mortgage Debacle, Watchdog Says. Parent comment

Re:Student Loans a Lot Like the Subprime Mortgage Debacle, W... by Nasrudith on Wednesday December 11, 2019 @08:42AM (#21762211)
That reminds me of the Paradox of the Court. Obviously not quite as straightforward but such a payment model does encourage at least some degree of sandbagging.

https://en.m.wikipedia.org/wiki/Paradox_of_the_Court

On another note the idea rubs me as immoral in ways that loans don't for reasons I am not quite able to articulate. Like viscerally seeming too far too similar to indenteture.

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Re:Student Loans a Lot Like the Subprime Mortgage Debacle, W... by int_19h on Wednesday December 11, 2019 @05:04PM (#21767255)
Indenture is loathsome because the person under it is compelled to work. That isn't so in this payment model - they're free to work or not as they wish, and they are free to choose the amount of work, and their own balance of pay vs working conditions, and so on.
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Re:Student Loans a Lot Like the Subprime Mortgage Debacle, W... by bumby on Wednesday December 11, 2019 @09:08AM (#21762430)
Interesting link, thanks for sharing!

I found a link but couldn't add it to my original comment. There is a 5% salary payment for 15 years once the student reaches $25k. Sandbagging is possible but it seems like students would start working against their own monetary self-interest pretty early (from a salary perspective at least; who knows, I'm sure there's other creative ways to game the system).

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