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That's not how federal student loans work. You can't borrow unlimited amounts to cover any amount of tuition, and unlike insurance companies, it's not the gover
by bachmeier 2y ago
That's not how federal student loans work. You can't borrow unlimited amounts to cover any amount of tuition, and unlike insurance companies, it's not the government paying the bill. For instance, you can only get $5500 for the first year. Tuition caps would be an orthogonal policy.
- bdcravens 2y agoI'm aware of the caps and the fact that the loans are backed, not paid, by the government. However, attaching conditions to eligibility is a tool the government can wield.
- llamaimperative 2y agoJust make them dismissable in bankruptcy and the lenders will figure out how to lend responsibly
- bachmeier 2y agoThis comes up so much, but there's no need to fight that battle (and it would be a big one). Put a max on the percentage of your income that needs to go to student loan repayment, like 7%, and a time limit on repayment, like 10 or 20 years.
- llamaimperative 2y agoI like this concept! Though I worry how "creative" borrowers could be in suppressing their reportable income through the payback period...