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All student loans should be subject to income-based repayment. They can still be very difficult/impossible to discharge in bankruptcy, but you shouldn't have to
by praxulus 9y ago
All student loans should be subject to income-based repayment. They can still be very difficult/impossible to discharge in bankruptcy, but you shouldn't have to make significant payments on them unless you're actually making decent money.
- tybit 9y agoThis is how it works in Australia and it works very well IMO. It also indexes with inflation so that there isn't a major stress if you graduate with a low paying job and work your way up to a higher salary. This does mean its everyone's lowest priority to pay off, but you can't reasonably avoid paying it other than not making an income.
- learc83 9y agoIt works exactly like this in the US. People who aren't currently in college just aren't aware of it.
- learc83 9y agoAll federal student loans work exactly like this, and Federal loans account for 90% of all loan disbursements.
- skgoa 9y agoThis is how it works in Germany. Tuition is (almsot) free, but you get an allowance (up to aprox €850 IIRC) every month, if you and your parents don't have a high income. In most German states you a) only have to pay back up to €10k of that and you only have to pay if you make more than a pretty high number that I forgot AND you have a graceperiod of several years before you even to start paying after you leave uni. Consequently, I know nobody who has difficulty making payments.