re: Student Loan payments restarting

quote:

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And before anyone says I'm insane... what I have proposed is basically a more accountable form of TOPS.

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Meh, I don't necessarily think it should just be free if you basically graduate. It would likely also cause such high demand for the state schools that admission standards would get so high potentially causing other perceived problems.

My idea:

- interest fixed at 0%
- all repayments are done based on income
- 0 repayments when below a certain income (say <$50k and increases with inflation)
- just need to find the right % for those over the limit for paying back
- upon death the student loan balance is pulled from the estate and whatever is above the total estate amount is forgiven

In this scenario when someone is not making good money they don't have to pay back anything and the balance doesn't grow. If they become successful later in life well they have to pay back that money they borrowed. It doesn't transfer to heirs so it is never an undue burden on their heirs. Could put an exclusion criteria to fund a funeral before estate pays back the student loans.

Ultimately if you are successful then the taxpayers should not be on the hook for paying for the tools you used to make good money. We also should not be crippling people who are just trying to get by (crippling their current life or digging their hole so big that when they get their life together they can't get out). It is hard for me to think a secretary making $50k who pays taxes should be paying for a Doctor to receive his education to start making $400k after residency.