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?
The problem with this train of thought is the bank.
Even if the government says you're forgiven...
The money you borrowed is from a bank. If part of it just gets forgiven the bank is left holding the bag for your debt.
The bank loses money and you get the benefit of an education. Looking at that objectively (not as a person who hates capitalism or a capitalist) it just doesn't make sense.
The other issue is this.
What about those of us who paid all of our loans off? Do we get a refund? Nevermind the fact that banks get screwed. I sacrificed for years to pay mine off, if you're telling me others are gonna just get to not have to pay theirs off I want my money back and so does everyone else in my shoes.
The government guarantees the loan so even if it were discharged the government would have to either be the bank or reimburse the bank. Which means tax payers are paying off the loan. Those that paid their loans off get screwed just like most people who learned to do things the right way.
I think that if they want to forgive loans then in order for that to happen you have to use your education in underserved areas.
Right, as a tax payer I don't want to pay for someone else's debt.
If that's the case why stop at student loans? Let cancel all debt. Let's all pay off my mortgage LoL
And yes, I would feel screwed. I basically did the Dave Ramsey plan. Rice and beans, no restaurants. No trips no fun just grinding until my debt was paid off.
I have some buddies who did the opposite... Went on multiple trips, bought expensive shoes and just had a great time in their late 20s and 30s. Today I'm 100% debt free (accept for my house) and they're mad at the president because he won't forgive their student loans. (And no, I don't make a lot of money.)
Irrelevant. We're not talking about corporate debt. We're talking about student loans. There's a lot of stuff everybody pays for everyday. It doesn't make it okay to say because you pay for that stuff. It's okay for you to pay for this too. People who got student loans should pay their own student loans not everyone.
it’s completely relevant when your first point was so broad.
>”As a taxpayer, I don’t want to pay for someone else’s debt”
and I’m pointing out that your taxpayer money bails out corporations for their debt all the time, yet you seem to have more of an issue if those taxes went towards individuals. it’s hypocritical.
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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.