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Tying loan repayment to a percentage of income is a good idea. Under a certain amount you pay nothing, over that you pay 5-10% annually. This realigns the loan
by ada1981 8y ago
Tying loan repayment to a percentage of income is a good idea. Under a certain amount you pay nothing, over that you pay 5-10% annually.
This realigns the loan companies to make investments with the students vs. selling them a presidigous ego degree with no real value in the market place.
If there is anything governments ought to do, it’s to help align the interests of all parties Via creative legislation.
- cameldrv 8y agoThis exists in a couple of different forms on government student loans (Income Contingent Repayment for example), but it's the government that takes the hit, not the university. The university's incentive is to talk about the benefits of a well-rounded education, and I agree with that (One of my majors was Philosophy), but for a university to take what is now exceeding $100/hr of instruction on credit, for years on end, with no reasonable hope of hardship-free repayment sounds like Scientology or some other cult.