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My school, Purdue University, has been making a big push towards IBR. The biggest issue with it I can see, is that, as far as I can tell, there's no cap on the
by Meegul 10y ago
My school, Purdue University, has been making a big push towards IBR. The biggest issue with it I can see, is that, as far as I can tell, there's no cap on the money collected. That is to say, if they take 15% of your income, and you end up making lots of money, they will continue collecting their share past the actual cost of college. It honestly makes me feel like they see me as an indentured servant, not a student.
- pricechild 10y agoSurely this can't be true? It isn't because the minimum repayments are so low they never come close to the large interested accrued?
- Meegul 10y agoHere's some more reading on it: https://www.nytimes.com/2016/04/09/business/dealbook/getting-a-student-loan-with-collateral-from-a-future-job.html https://www.nytimes.com/2016/04/09/business/dealbook/getting... Mitch Daniels, the president of Purdue, has been pushing for this as a sort of solution to student loans, but it just ends up with the higher-income students subsidizing the education of the lower-income students, where 'income' refers to post-graduation job income.
- dragonwriter 10y ago> Mitch Daniels, the president of Purdue, has been pushing for this as a sort of solution to student loans, but it just ends up with the higher-income students subsidizing the education of the lower-income students, where 'income' refers to post-graduation job income. You know what else does that? Having government guaranteed loans in the first place.
- deleted 10y ago[deleted]
- whorleater 10y agoOn the other hand, if the cost of a college is "flexible" as in a % of your income, doesn't it just end up in a situation in which higher-paid graduates subsidize the cost of college for lower-paid graduates?
- Meegul 10y agoI believe that's the entire idea of it. That and then the college could selectively decide how many majors of a certain type they need, financially speaking. A college will then be punished financially for pushing out tons of gender studies grads rather than engineers.
- mywittyname 10y agoOr water down their engineering program in order to push out more graduates.
- thmsths 10y agoBut since education is a market this would lower the reputation of the college thus attracting less candidates and if they lower the requirements too much they may even loose their accreditations.
- deleted 10y ago[deleted]
- pmiller2 10y agoYou are free to choose a level repayment plan if it would be a lower monthly amount than IBR. I do exactly that.