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The overwhelming majority of student loan debt is government backed and eligible for some kind of income based repayment plan. There are four different kinds, b

The overwhelming majority of student loan debt is government backed and eligible for some kind of income based repayment plan. There are four different kinds, but the most common two use a formula of 10% of income after 150% of the poverty level for the relevant household size. It is entirely possible to have a required payment of $0, before even getting into forbearance or deferral. Car loans and mortgage loans are not comparable. It's possible to simply be unable to pay those debts. So there's every good reason that the student loan default rate should be lower than those.

ggm 9y ago
Assuming you don't deliberately hide income I guess. Some people have said that for those who get on the low interest, or non-accumulating interest loan schedules, its the best kind of debt you can have. The lein on income is a royal pain and for student debt, it often hits just at the point you want to use increased disposible income to do things like have kids, restart the cycle. I was lucky enough to go to university in the UK in the time of free study with grant so to me, this is all hypothetical not actual and to any current student facing a lifetime of debt, I apologize for the circumstances you have been put in, by people like me
- PeachPlum 9y ago
  A UK student now who earns £40k will pay £142 per month student loans yet £800 tax/ni and still take home £2400. There's nothing to apologise for.
aaavl2821 9y ago
But schools realize how flexible the terms are and increase the price of tuition to max out the level of debt students can tolerate even with income based repayment Dental students in high cost of living areas routinely graduate with half a million in debt
Stanish 9y ago
It's almost as if the soul-crushing predatory bureaucracy and the ego crippling process of begging for forgiveness on something that should be a right has created cognitive dissonance in large numbers of people, and hence "irrational" behavior.

ggm 9y ago

Assuming you don't deliberately hide income I guess. Some people have said that for those who get on the low interest, or non-accumulating interest loan schedules, its the best kind of debt you can have. The lein on income is a royal pain and for student debt, it often hits just at the point you want to use increased disposible income to do things like have kids, restart the cycle. I was lucky enough to go to university in the UK in the time of free study with grant so to me, this is all hypothetical not actual and to any current student facing a lifetime of debt, I apologize for the circumstances you have been put in, by people like me

PeachPlum 9y ago
A UK student now who earns £40k will pay £142 per month student loans yet £800 tax/ni and still take home £2400. There's nothing to apologise for.

aaavl2821 9y ago

But schools realize how flexible the terms are and increase the price of tuition to max out the level of debt students can tolerate even with income based repayment Dental students in high cost of living areas routinely graduate with half a million in debt

Stanish 9y ago

It's almost as if the soul-crushing predatory bureaucracy and the ego crippling process of begging for forgiveness on something that should be a right has created cognitive dissonance in large numbers of people, and hence "irrational" behavior.