3 ms·
while the parent poster indeed made an unsubstantiated assertion, it's not that hard to understand the perverseness of giving money to already well-off people.
by clairity 5y ago
while the parent poster indeed made an unsubstantiated assertion, it's not that hard to understand the perverseness of giving money to already well-off people.
i personally think we should make federal loans highly progressive, both in amount and interest rate, and make them dischargeable via ordinary bankruptcy proceedings (also, revert the bankruptcy-tightening laws that were passed in the mid-oughts). that would be something like loans for 100% of tuition, room & board for those from families under median income (~$68K in recent years) smoothly varying (but not linear) down to 0% for those above 3× median household income (~$200K). same for interest rates: risk-free rate (~2.5%) for under median to market rate for unsecured personal loans (in the 10-20% range) at 3× median income. anyone above 3× median will likely have an established banking relationship somewhere to be able to get private loans.
this would put downward pressure on tuition, while still meeting the objective of providing opportunity for the less privileged majority. same goes for loan forgiveness--make them highly progressive based on recent earnings/wealth (including unrealized gains).
- romwell 5y agoI agree with what you say. The idea for total loan forgiveness is that for a reasonable progressive scheme, the difference between that and total forgiveness may be marginal. We have plenty examples of how drug-testing for government benefits ends up costing more than simply giving those benefits to all who qualify even if they are drug users. Same applies here. It'd be interesting to see the actual numbers. But sure, I'd take a progressive scheme like the one you proposed. Hell, just your first sentence (re: bankruptcy) warms my heart and fills my soul with glee :)
- clairity 5y agoyah, immunity from bankruptcy is the original sin of student loans. it’s literally what drove hyperinflation in higher ed.
- romwell 5y agoI just like how it was passed in 1976 by the Nixon administration just as the proportion of Black students in universities was exploding (from 1960 and 1975, Black enrollment in higher education increased at a rate 3.5x of total enrollment growth; the legislation was introduced in 1975), and soon after, the number of Black students enrolled started dropping[1]. The proportion stayed low for about 20 years. The "original sin" in 1976 was just one of many acts of legislation that were "compensating" for the Civil Rights reforms by cutting down the funding available to Black students. It's amazing how little one has to peel in all things that suck in the US to find racism behind it. And now all of us are screwed. [1]https://journals.iupui.edu/index.php/muj/article/download/20252/19848/0 https://journals.iupui.edu/index.php/muj/article/download/20...
- clairity 5y agointeresting, i didn't know about the racial angle, but it's thoroughly unsurprising to hear.