I think these programs are ok, but they need to be
by Tex Francisco (2024-02-22 13:46:23)

In reply to: I’m a huge fan of income-based repayment and forgiveness.  posted by kormal

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simplified and improved in a few ways. I'll start by saying I only have very tangential exposure to these programs through friends of my wife, so it's probable that I don't know or understand all the implementation details. My understanding though is that while you're in repayment, your balance may actually increase (negative amortization), which can have major ramifications if someone is looking to switch jobs, get married and file taxes jointly, etc. before the loan is forgiven. IMO, while on an IBR plan, the principal balance of the loan should decrease according to the normal amortization schedule. That way, if someone has a life event where they no longer qualify for IBR, then they would just transition off IBR with their loan in the same place it would have been had they never done IBR in the first place. Student loans shouldn't be a reason for someone to not get married or not take a higher paying job.

They made that improvement
by czeche  (2024-02-22 15:50:39)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Cannot reply

If your payment does not cover all the interest, the excess is forgiven so your loan set least does not grow.
right
by jt  (2024-02-23 01:51:08)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Cannot reply

free shit. Buying votes. Not fixing the underlying problem.
I think you can split it into two different problems.
by Tex Francisco  (2024-02-23 09:03:29)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Cannot reply

They have to clean up the existing mess, and they need to figure out how not to make more mess in the future. The fact that this addresses the first problem without addressing the second doesn't necessarily make it a bad policy. I think we're starting to see the market address the second problem to some extent, but the student loan regime still needs a major overhaul.
Why not let the market address both problems?
by jt  (2024-02-23 11:04:33)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Cannot reply

Oh, because that won't buy votes.
Because the market wont address the problems in fact the
by wpkirish  (2024-02-23 11:54:03)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Cannot reply

market is why the problem exists.

The top schools get more and more applications every year for approximately the same number of spots. As near as i can tell in the 40 years since I applied to ND they have added approximatelt 300 spots to the class while attracting 25,000 more applications. The same is true across the board. Around the time I applied to ND UCLA had nearly a 90% acceptance rate. Last year they accepted 12,737 applicants out of 145,910.

The competition to get into those schools drives up the price which drives up the entire market making it more expensive for everyone at every level of school. And I understand not everyone should or needs to go to college but likelwise the trades are not right for everyone either. Not to mention if 25% of college students dropped out and went into the trades the increase in numbers would likely drive down the wages in those industries.

wait, Tex said that the market is addressing one of them
by jt  (2024-02-23 13:40:29)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Cannot reply

it seems like you disagree with him and not me necessarily.

My post is in reaction to his; I make no claim as to whether the market is addressing either.
My fault was just responding to your saying let the market
by wpkirish  (2024-02-23 17:08:27)     cannot delete  |  Edit  |  Return to Board  |  Ignore Poster   |   Highlight Poster  |   Cannot reply

respond. Apologies for reading it out of context.

I do have my doubts about colleges correcting it based on my current experience but I may also be too much into the process right now to see clearly