I get the problem DJ wants to fix and i think it needs to be fixed. I don't have any clue what the right answer is but I'm not really sure if freezing interest at 10 years will fix the problem.

Here are alternatives:

1) a credit freeze until the debt is paid off

2) take the money from other entitlements, i.e. no access to other government programs until debt is repaid

3) take out debt payment directly from paychecks (that's how NZ does it)

4) treat it like all other debts, what the system was designed for

Im not buying that people cannot pay a 36k loan back in their lifetime as a fact. I think the paying back may interfer with other life goals such as family creation, owning a home, starting a business, etc.

It is morally objectionable to move the burden of higher education from people with high earning potential to people with low earning potential and people who did not place the same burden on society (those who paid for school themselves or through other programs like the military)

i'm into all 5 options at least a little until i really see how they'll perform

i'm into the idea of them

The freeze makes no sense i can see no reason for it rather than reducing the cost of the loan. Then why not just recommend reducing the APR to 1.36% so it doesn't come with reverse incentive of no advantage of paying off before year 30 after you've reached year 10.

@Putz 1: Freezing interest does nothing to disincentevize paying off your loan once it's frozen as you HAVE to make the minimum payments to pay it off by year thirty otherwise 2) in your second response comes into play.

2: All loans would have to be front loaded. That would be the whole point. It would naturally reduce the number of people that take out loans for education which is retarded.

3: Socialism isn't anything that wasn't brought up by the free market.

4: a 50% profit is what would occur on loans with an APR of 5% right now. The whole idea is that interest rates for student loans would rise to discourage people getting loans in the first place.

"You say that government should not back the loans so i would assume that means you want it run by business so you would have to convince them that the rate of return justifies your solution or via government regulation"

Yeah, I think that businesses should have free reign to offer whatever loans they want. The problem is that right now the government backs student loans so you can't declare bankruptcy and liquidate your assets. Remove that and people will stop offering 100k loans because they're a bad investment.

🆙 | **DJ_Anuz leveled up!**

Conversly with a 1.36% APR or effectively a 1.36% APR with the freeze what insentive is there to prioritize paying off a student loan over higher interest debts like home morgage, credit card, or car loan

Socialism is when society shares the cost of your burden

If you want to front load the cost of student loans, why not just reduce the payback period to 10 years?

As far as your response to youtube goes:

1) That solution would make multiple generations ineligible to purchase anything they don't have the cash for.

2) That already happens if you don't pay off your minimum balance for 270 days

3) Again, this happens already, but that doesn't solve the issue of perpetual debt due to interest

4) You can't just wave a magic wand like that for existing loans.

No one could fucking do that man.

You can't pay off 100k in ten years.

In an ideal world student loans would be treated like any other loan, and no one would back them so the only people that go to school are the ones that can afford it with cash

I paid off my 400k house in 6.5 years. So yes you i can pay off 100k in ten years, try again

Not everyone makes over 100k a year dude.

"I did it, so why can't anyone else?"

Fuck that's narcisicistic man.

You dont need 100k a year to pay off 100k in 10 years, you need like 15k a year to do that

Okay if you have 0 other payments to make

Rarely is that the case.

Why are you so invested in this bad idea?

Because Bernie fucking Sanders would have been president cause of it if not for DNC corruption.

And me pointing out i did it, is not narcism, it shows your point of "can't" to be wrong

Can't for most of society

Can't is different than won't

Dude

the median income is less than 60k a year

Society can do it, it chooses not to

What the hell

60k a year is plenty to pay off 36k in student loans in less than 10 years

I think you overestimate how much money the average millennial makes dude.

I went by your estimate

Maybe you underestimate how much the average millenial wastes

Okay. But 36k in student loans isn't the average for millenials.

Sure millenials are wasteful, but they don't make that much money

If you have a college degree and you're not making 60k

wtf are you doing

Lots of people are in that situation @Just for youtube [NB1]

no shit

and wtf are they doing