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Perhaps we should align incentives. A good start is to make it so that education loan payments are only required on higher paying jobs and the payment increases
by scarejunba 8y ago
Perhaps we should align incentives. A good start is to make it so that education loan payments are only required on higher paying jobs and the payment increases progressively (like taxes).
- scotty79 8y agoIt would be great if loan payments couldn't exceed some percentage of income for example 10%. If it exceeds 10% of your current monthly income you pay just 10% and rest is written off. If you are unemployed, you pay nothing and have the capital you owe reduced by the full payment. This would quickly defund useless education.
- scarejunba 8y agoHmm, yeah. When I think about it, these things will probably end up with a system as complicated as (or more complicated than) taxes. Can you imagine? Someone studies Mathematics and then makes money primarily through capital gains, or they get inheritances, or they sell their home after studying to be a carpenter and fix up their house. The complexities are huge.
- scotty79 8y agoSure. There will be people that will get undeserved benefit. But this idea is not about perfect justice. It's about aligning incentives so that financial institutions don't fund expensive degree's that will get you janitorial job or no job at all. Currently student loans are pretty much no risk at all. You can even shake them off with bankruptcy.
- selimthegrim 8y agoUh, only if you’re disabled.