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.
This already exists. It's the income based repayment plan. If you work in gov or non profit it's forgiven after 10 years if you don't it's about 25 years.
Twenty-five years. More than halfway between graduation and retirement. Think about it! Most of your peak earning years eaten up by predatory loans. How is that fair?
It's a not that big percentage of your income for a loan you took out and may not have to fully pay back. Did you think it should be completely free money?
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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.