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In order to qualify for those deferals you still need to pay 10% of your income. This means factually that all of those people cannot cover their interest with
by wtvanhest 10y ago
In order to qualify for those deferals you still need to pay 10% of your income. This means factually that all of those people cannot cover their interest with 10% of their income. In my opinion, that should be considered a loan in default.
They can get out from under the loan in 10 years, we still have to pay for it.
It is failed policy to allow college to get to expensive due to inflation of prices through loose lending. IMO, that is the real bubble.
- projektfu 10y agoIt's 10% of discretionary income, which is the amount that excess 150% of the federal poverty level. Nonetheless, the law also allows for hardship forbearances that allow people to stop paying without defaulting. Personally, I think the law is a backdoor subsidy done in the worst way. It increases stress on families who can't afford the tuition for 20 years to give a subsidy to the university. It incentivizes high tuition and keeping students on the treadmill, with no concern for quality. I don't particularly mind if tax money helps pay for an esoteric major, but I expect it to produce a capable scholar in that field.