4 ms·

This is my exactly my point. In the US, many students take an educational loan -- but, I would argue that most students in the lower social strata (e.g. African

This is my exactly my point. In the US, many students take an educational loan -- but, I would argue that most students in the lower social strata (e.g. African Americans whose parents have not had the benefit of college education) still think consider it a risky option and that 'it is not for them'. And those who graduate after a student loan are forced to take suboptimal choices (because now they have to pay back that loan). Also, I don't understand why a university education has to be so expensive -- you can get great content through MOOCs. If you can somehow combine that with mentoring (from senior students), you can easily provide low cost, high quality education to those who need it.

k-mcgrady 12y ago
>> "consider it a risky option" In the UK system there is no risk. You only have to pay back the loan (form the government) when you are earning over a certain amount per year. It is taken directly from your salary like other taxes. If you never earn enough money you never have to pay it back. If you choose to live and work abroad you don't have to pay either.
- sillysaurus3 12y ago
  In the US, it's very risky. If you default on your loan, your credit will be terrible, and your credit determines the quality of your life. It determines what house you can get and whether you can get internet service. You have to pay your loan regardless of whether you have a job or not, or whatever your financial condition is. Exceptions can be made (you go through a loan handler, so it's whatever they say) but overall it's a risk. It's just a risk that pays off for most people. That UK system sounds pretty wonderful.
  - jcampbell1 12y ago
    The US has a similar system to the UK called Income Based Repayment. It is not the default option, but I think it works similarly in principle.
    - praxulus 12y ago
      I believe that can only be used on government loans, not private loans. Yet another reason to avoid private student loans if at all possible.
      - sillysaurus3 12y ago
        If you want to go to university, and you're not from a privileged economic background, avoiding private student loans isn't really possible, unfortunately. Doubly so, because people from disadvantaged economic backgrounds have no idea how to find government money to help them attend college in the first place. And government loans usually don't cover all of the expenses related to university anyway, so private loans become necessary.
        k-mcgrady 12y ago
        >> "And government loans usually don't cover all of the expenses related to university anyway, so private loans become necessary." Again, not in the UK. Students here are given two loans. One to cover tuition and a separate one for cost of living. It's not much but it's enough for a student to get by.
        coryrc 12y ago
        Which is why we have community colleges, which are heavily subsidized, focused mostly on paying careers, and affordable to people making little money.
      - wolfgke 12y ago
        Why don't you (or lots of US citizens) lobby for introducing a law that student loans only have to be paid back as long as you earn a decent amount of money (as in the UK according to a post higher in the tree)?
- jrmg 12y ago
  People still _perceive_ it as risky - "OMG I'll be in £27,000 in debt after I graduate" - even if it's not actually risky for the reasons you mention! I've long thought that framing it as a graduate tax would be much less discouraging to potential students.
  - jiggy2011 12y ago
    A graduate tax would be worse, because you would never finish repaying it.
- Flimm 12y ago
  You do have to pay it back if you live abroad, although I don't know how they would enforce it. http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678804&_dad=portal&_schema=PORTAL http://www.studentloanrepayment.co.uk/portal/page?_pageid=93...
  - k-mcgrady 12y ago
    I don't think it's enforced at all. I know several people who worked abroad for years and didn't start paying until they came back.
- bane 12y ago
  In the U.S. student loans can be very high risk. There's no guarantee your degree will help you get a higher paying job, and the loan repayment requirements are the strongest imaginable, even bankruptcy can't wipe student loans off your debt.
- thro1237 12y ago
  I wish there was something like this in the US.
HarryHirsch 12y ago
Considering that African-Americans are who all sorts of really sketchy for-profit vocational colleges are marketing themselves to (Corinthian College, anyone?), it's not really surprising that this demographic thinks that college is a risky option.

k-mcgrady 12y ago

>> "consider it a risky option" In the UK system there is no risk. You only have to pay back the loan (form the government) when you are earning over a certain amount per year. It is taken directly from your salary like other taxes. If you never earn enough money you never have to pay it back. If you choose to live and work abroad you don't have to pay either.

sillysaurus3 12y ago
In the US, it's very risky. If you default on your loan, your credit will be terrible, and your credit determines the quality of your life. It determines what house you can get and whether you can get internet service. You have to pay your loan regardless of whether you have a job or not, or whatever your financial condition is. Exceptions can be made (you go through a loan handler, so it's whatever they say) but overall it's a risk. It's just a risk that pays off for most people. That UK system sounds pretty wonderful.
- jcampbell1 12y ago
  The US has a similar system to the UK called Income Based Repayment. It is not the default option, but I think it works similarly in principle.
  - praxulus 12y ago
    I believe that can only be used on government loans, not private loans. Yet another reason to avoid private student loans if at all possible.
    - sillysaurus3 12y ago
      If you want to go to university, and you're not from a privileged economic background, avoiding private student loans isn't really possible, unfortunately. Doubly so, because people from disadvantaged economic backgrounds have no idea how to find government money to help them attend college in the first place. And government loans usually don't cover all of the expenses related to university anyway, so private loans become necessary.
      - k-mcgrady 12y ago
        >> "And government loans usually don't cover all of the expenses related to university anyway, so private loans become necessary." Again, not in the UK. Students here are given two loans. One to cover tuition and a separate one for cost of living. It's not much but it's enough for a student to get by.
      - coryrc 12y ago
        Which is why we have community colleges, which are heavily subsidized, focused mostly on paying careers, and affordable to people making little money.
    - wolfgke 12y ago
      Why don't you (or lots of US citizens) lobby for introducing a law that student loans only have to be paid back as long as you earn a decent amount of money (as in the UK according to a post higher in the tree)?
jrmg 12y ago
People still _perceive_ it as risky - "OMG I'll be in £27,000 in debt after I graduate" - even if it's not actually risky for the reasons you mention! I've long thought that framing it as a graduate tax would be much less discouraging to potential students.
- jiggy2011 12y ago
  A graduate tax would be worse, because you would never finish repaying it.
Flimm 12y ago
You do have to pay it back if you live abroad, although I don't know how they would enforce it. http://www.studentloanrepayment.co.uk/portal/page?_pageid=93,6678804&_dad=portal&_schema=PORTAL http://www.studentloanrepayment.co.uk/portal/page?_pageid=93...
- k-mcgrady 12y ago
  I don't think it's enforced at all. I know several people who worked abroad for years and didn't start paying until they came back.
bane 12y ago
In the U.S. student loans can be very high risk. There's no guarantee your degree will help you get a higher paying job, and the loan repayment requirements are the strongest imaginable, even bankruptcy can't wipe student loans off your debt.
thro1237 12y ago
I wish there was something like this in the US.

HarryHirsch 12y ago

Considering that African-Americans are who all sorts of really sketchy for-profit vocational colleges are marketing themselves to (Corinthian College, anyone?), it's not really surprising that this demographic thinks that college is a risky option.