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Good info. The problem I see with a cap is that it's one size fits all. I'd rather see a system where a school can charge higher rates if it is confident that i

Good info. The problem I see with a cap is that it's one size fits all. I'd rather see a system where a school can charge higher rates if it is confident that its graduates will be able to repay those loans. 20 years just seems too long. And the key point here is that when a balance is forgiven, the institution should bear the cost, not the government. Maybe that's already the case. Can you provide more detail?

danielweber 13y ago
the institution should bear the cost That assumes they really feel it. If a school charges you $500,000 per year for tuition and then gives you financial aid of $480,000 per year, they aren't really giving you that money. If a school extends you $150,000 in credit, and then in 20 years you've only paid $40,000 of it back, they haven't really lost $110,000. They are just practicing perfect price discrimination, getting the most money from the people most willing to pay, backed up by the government who is doing the work of auditing people's tax records to ensure compliance.