Want to buy a house? Or make most major life financial decisions involving loans? You’ll pay it off to the best of your ability. Even if your student loan payment is a couple hundred bucks a month, lenders look at the entire principal and weight it heavily against you—even with 7 years of perfect payments.
But the real question you should ask is: why do we want normal people to pay these particular loans back when it is a fact that the government crafts policies to force people into higher education in order to secure our economy? For all the bluster with Gen Z somewhat dodging degrees, the fact remains that higher education remains a requirement for the future strength of all of us.
It should be gratis just like primary education is. It’s a public good. Cut the cost of getting these degrees and suddenly you don’t have people requiring incredibly high salaries in order to just pay the interest.
As much as we’d prefer to go back to free uni like we used to have, you could adopt something like Australia has. Minimum repayments based on your income, interest tied to inflation only. 👍
So why would anyone ever pay it back?
Well, you could do interest free with penalties for not making minimum payments.
But also, effectively canceling student loans may be the whole point
Want to buy a house? Or make most major life financial decisions involving loans? You’ll pay it off to the best of your ability. Even if your student loan payment is a couple hundred bucks a month, lenders look at the entire principal and weight it heavily against you—even with 7 years of perfect payments.
But the real question you should ask is: why do we want normal people to pay these particular loans back when it is a fact that the government crafts policies to force people into higher education in order to secure our economy? For all the bluster with Gen Z somewhat dodging degrees, the fact remains that higher education remains a requirement for the future strength of all of us.
It should be gratis just like primary education is. It’s a public good. Cut the cost of getting these degrees and suddenly you don’t have people requiring incredibly high salaries in order to just pay the interest.
To improve their credit score.
As much as we’d prefer to go back to free uni like we used to have, you could adopt something like Australia has. Minimum repayments based on your income, interest tied to inflation only. 👍