4 ms·

So does usury. You loan someone $40000 @ 5% APR and he spends it on education. If the loan is to be paid back in a decade, he has to cough up $416 per month. U

So does usury. You loan someone $40000 @ 5% APR and he spends it on education. If the loan is to be paid back in a decade, he has to cough up $416 per month. Unlike a mortgage, he can't foreclose on his education. Since he doesn't have any assets to sell, and is by law unable to get out of them through bankruptcy, his only choice is to work some amount of hours every month to pay off the loans. If that is not slavery, then surely ISAs are fine too? And if that is slavery, then how are ISAs any worse?

hansvm 6y ago
Small nitpick, if you're diligent with the paperwork and aren't a victim of some of the recent loan servicing scandals then the (federal) loan will eventually be forgiven so long as you pay a percentage of your income (which can be as low as $0). Functionally student loans are a lot like a typical ISA with a longer period (and comparable max total payments) which can't be discharged.