Is this a reverse Ponzi? Students don’t have to repay loans, as long as they pay 15% of their “discretionary income” for 20 years or so. So “no job, no problem” … banker happy, $100K indebted student happy, taxpayer sad”
…. Many borrowers, even those who are unemployed or earning little, can avoid default by participating in an income-based repayment program that began in 2009 but is not as widely used as might be expected. Under the program, borrowers who pay 15 percent of their discretionary income for 25 years — 10 years if they are in public service — can have the rest of their federal student loan debt forgiven; in 2014, that will go down to paying 10 percent of discretionary income for 20 years.
“In the age of income-based repayment, there is no reason for a student to default, since even a payment of zero dollars is acceptable payment, if you have zero discretionary income,”
Income based repayment … AWESOME … why work, just keep borrowing? I think China is the piper that will have to one day be paid. Our enemies must love this.
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Depression days, crisis pays, spendin’ all week with you!!!
These days are ours (we love Ponzi!)
These days are ours (our taxin’ schemes!)
This day is ours….These are those hopey daze!
(From a Fonzi-lovin’ Happy Days fan. 😀 )
Making Cloward and Piven proud; that’s what they do best.
Is this a reverse Ponzi? Students don’t have to repay loans, as long as they pay 15% of their “discretionary income” for 20 years or so. So “no job, no problem” … banker happy, $100K indebted student happy, taxpayer sad”
…. Many borrowers, even those who are unemployed or earning little, can avoid default by participating in an income-based repayment program that began in 2009 but is not as widely used as might be expected. Under the program, borrowers who pay 15 percent of their discretionary income for 25 years — 10 years if they are in public service — can have the rest of their federal student loan debt forgiven; in 2014, that will go down to paying 10 percent of discretionary income for 20 years.
“In the age of income-based repayment, there is no reason for a student to default, since even a payment of zero dollars is acceptable payment, if you have zero discretionary income,”
http://www.nytimes.com/2011/09/13/education/13loans.html?_r=1&ref=us
Income based repayment … AWESOME … why work, just keep borrowing? I think China is the piper that will have to one day be paid. Our enemies must love this.
It took me a minute to get that. ROFLMFAO