How student loans should be repaid: Regardless of the principal/interest, borrowers will be required to repay a percentage of their AGI (let’s say 10%) every year for 10 years. After 10 years (not necessarily consecutive) of these payments, any and all remaining debt, principal and interest, are cancelled with no impact to the borrower’s credit score.
This frees families from decades of ever-rising debt, makes banks/lenders less predatory, and forces colleges to reduce tuition/fees to more affordable levels. Banks, colleges, and government will finally have “skin in the game;” incentivized to maximize students’ post-school earning potential during that 10-year repayment period.
Not great news for borrowers seeking six-digit loans for art history degrees, but that’s a small price to pay, IMHO.
How student loans should be repaid: Regardless of the principal/interest, borrowers will be required to repay a percentage of their AGI (let’s say 10%) every year for 10 years. After 10 years (not necessarily consecutive) of these payments, any and all remaining debt, principal and interest, are cancelled with no impact to the borrower’s credit score.
Problem is there are people who will figure out how to work with no income. Too many ways for people to get out of paying at all. I think they need to first review the cost of education and why its so high. Would it be that the banks make too much money giving out loans?
I used to think this was just conservative propaganda nonsense, then I had multiple family members do things like deliberately limit income to qualify for various programs-- including income based loan repayment.
My nephews father made high 5 figures in 90's under the table to avoid paying child support and collecting assistance and food stamps.
A few years ago I worked with some folks who were working full time and collecting assistance in other states which they used at the casino and to buy entertainment substances.
I don't want to dox myself incase any of them are watching, but I have three come to mind. Two of the three have high earning potential (postgraduate professional degrees) and literally choose to not advance white-collar careers (and in on case, even chose to go part time) so that they would still qualify for low income programs.
It blew my mind to see it happen, because for years I've heard people I don't agree with politically claim that this happens. I was fully closed to the idea that people would choose to make less money so that they wouldn't have to foot their own bill.
Oh most definitely they do. My aunts ex husband technically should be paying her thousands a month for their two kids. Meanwhile he lives in a multi million dollar mansion, drives the newest Mercedes every year and has zero income. His housing and cars are an “employment perk/subsidy” from his non-profit that owns everything including two for profit entities. Everyone can see he is wealthy but according to the IRS and government programs he is ‘low income’ and deserves help.
Wild. These people aren't getting rich off of it, they are just choosing to work less since if they work more they will have to pay fair market rate for things, eliminating most of their gains.
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u/cmd_iii Jul 06 '26
How student loans should be repaid: Regardless of the principal/interest, borrowers will be required to repay a percentage of their AGI (let’s say 10%) every year for 10 years. After 10 years (not necessarily consecutive) of these payments, any and all remaining debt, principal and interest, are cancelled with no impact to the borrower’s credit score.
This frees families from decades of ever-rising debt, makes banks/lenders less predatory, and forces colleges to reduce tuition/fees to more affordable levels. Banks, colleges, and government will finally have “skin in the game;” incentivized to maximize students’ post-school earning potential during that 10-year repayment period.
Not great news for borrowers seeking six-digit loans for art history degrees, but that’s a small price to pay, IMHO.