Re:Judge rules that student loan debt is dischargeable in ba...
by SQueeeeeL on Monday January 13, 2020 @04:05PM
(#22038574)
This feels like such a gameable/difficult system. Think of how many people at the average college can't even complete regular trainings. There's no incentive to pay, actually there's a disincentive, you have to give your salary to an office, something most people are very sensitive about.
Currently, if you don't pay for college, they just stop you from enrolling in more classes. You don't enroll in classes, you don't get a degree. Very clear cause and effect. In a future income system, the student doesn't pay their fee, and maybe the school files a collection action on them, if they can track them down...
"Graduates of Outer Bumfuck University average an annual income of $60,000! We offer tuition at Outer Bumfuck for your choice of:
- $10,000 per semester - 2% of your income for 10 years, per semester (deferred until your first full-time employment)"
There are obvious holes in this plan (e.g. a short-term cash shortage, the potential for abuse by students), but it seems fundamentally sound. It also provides counter-pressure to inflating the job prospects of graduates, since the university comes up short in cashflow if their stated numbers are wrong.
This system also provides a sort of insurance plan for college students. You'll never be stuck with loan payments exceeding your income, since your total cost is based on your income!