Those are all great questions.

But they seem better addressed to the broader question of whether, how, and why the federal government should be in the business of making direct loans for secondary education.

Given the situation we’re in, some form of income-based deferral and forgiveness seems like a great idea. I think that a borrower who borrowed 12,000 for college, spent ten years in a structured repayment scheme, and spent those years living off of 2x the poverty line or less, should have those loans forgiven. At that income rate having their monthly payment go to the federal government as opposed to plowing it back into the economy is an easy call for me, personally.

Certainly at some point you get into a moral hazard but I don’t see SAVE or REPAYE as having come close to whatever that line might be.