Reply to Would you support the following policy on student loans?

Forum Index » Political Discussion

Reply to "Would you support the following policy on student loans?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous]Everyone has to pay theirs off in maximum 15 years.

Limit the income-driven repayment plans to five years after graduation. This should give borrowers enough time to set themselves on their career tracks. The remaining ten years will be on the standard repayment plan. Keep forbearance as an option for economic hardship, which you have to document, or unemployment, which you have to document active job search the way you do to collect UI.

But interest is set and permanently capped at 0.5%. 
There is absolutely no reason why people have to end up paying double the principle over decades. A lot of this happens because people sit on the income-driven repayment plans for too long and never pay the principle and the balance keeps growing, because of the ridiculous interest rates.

Student loans are NOT like mortgages in terms of financial decisions because when you buy a house, you generally have an idea of what you can afford, but when you take out a student loan, you have very little idea of what you will be able to afford. Even when you actively look at the ROI of a given field of study, you really don’t know what the job market will be in 10-20 years. That being said, I think the promissory notes and the guides they take you through should have a section where you play around with a tool that shows you the average salaries of given jobs and what repayment would look like for given sample fields.

For people with outstanding debt today, that has ballooned because of their interest rates - set all of theirs to zero interest. The government has already collected enough from them. Based on their 2021-2024 incomes, set them on a 10-, 15-, or 20-year full repayment plan with zero interest and zero “forgiveness.” [/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics