• No Tuition, but You Pay a Percentage of Your Income (if You Find a Job)
    41 replies, posted
https://www.nytimes.com/2019/01/08/business/dealbook/education-student-loans-lambda-schools.html?smtyp=cur&smid=tw-nytimes
Isn't the concept of free tuition in more socialist societies basically just that but you pay with taxes instead? Which means that if you find a REALLY good job you end up "paying back" society at large a bit more? I feel like this is just a spin on an really old concept but because capitalism in involved somehow it's better.
here's a cool idea, let's make it on a national scale and call it "taxes" also A typical student borrower will have $22,000 in debt by graduation,  I feel like this is a VERY generous number
wtf is with the US and EVERYTHING has to be privatized? its the same idea with healthcare, it's like we're keeping things privatized just for the sake of "hurrr my capitalism"
Its supposed to encourage people to study productive majors that are conducive towards economic growth. The universities would create an incentive towards focusing on economically productive majors rather than continuing the current trend of what is comparable to indentured servitude with student loans. Simply taxing for free tuition would not provide this incentive and would continue the "college degree bubble."
That should not be the only goal of universities.
The people have been passive enough to let it happen, and brainwashed (sorry but true) enough to actually defend it. Even the poor who it affects the most, are often the people who defend it the hardest. Also with all the anti-communist malarkey from back in the day, any socialist system was deemed evil, well, turns out capitalism is worse for the standard of living if socialist policy isn't applied to public services.
I agree it shouldn't, but it should be a goal.
This is pretty much what happens in Scotland. It's 5% of your paycheck but only after you're earning £16,000+
I'm in my last year at the CHEAPEST state school in my state and I'm ~46,000 in the hole at the moment, over twice that "average". Honestly fingers are crossed in that the education bubble in the U.S. collapses and companies are looked into for predatory loan practices.
Americans are "temporarily embarrassed millionaires". I can't imagine where the US economy is going to end up as a result of the impending student loan crisis. Wages are just too low to support repayment for most of us.
aka everyone should be whatever they never even thought about being Reminds me of how everyone wants to be a lawyer here because they go into the easiest course during high school, and then just say fuck it and think about law because "it pays well!!!"
people genuinely think capitalism is some magic that always gives you the best possible outcomes. If said outcomes are unfair or horrible for some, a lot, and or most people then that's "just how it is." 'nuthin personal kiddo. And if capitalism goes catastrophically wrong? Well that's cus it's not real of Real Capitalism™
https://twitter.com/TBSkyen/status/1082674128971284486?s=19
yep. I graduated with $100,000 to pay back. It's straight up a scam.
Fuck following your dream when you can follow... what's good for the economy instead? Oh boy that sure sounds inspired!
There's very often overlap and there's no such thing as a "dream job": as in, you love what you do every single day of your life. I love art but I don't love math, so I'm studying computer science so focus on user interface and experience design.
England has a similar weird student loan system that is almost functionally indistinguishable from a tax
Yeah but actively disincentivising people getting educated with life-long de-facto debt it just asking for a stupid population and a skilled worker deficit, as well as a widening of a class divide because now poor families have even less incentive to go to university. It's a flat out terrible idea.
This is exactly what happens here in the UK (and many more places i imagine) Basically the threshold is currently £25,000 p/a so if you earn anything over that you pay 9% of the earnings over the threshold for that year (i.e if you earn £26k you pay back £90) I'm sure anyone currently repaying their loan can provide more info cos its all calculated on whether you get a salary or monthly/weekly wages.
This is basically the HECS system in Australia. You can either pay whatever your course costs up front, or take a loan where they take 1% of every paycheck you make (once you're earning about $40k a year) until the loan is paid off.
Do these loans carry interest?
The situation you're citing is literally what we have with our education bubble. And this solution fixes exactly what you're complaining about. This give incentive for poor families to go to college knowing that they won't have to have a disproportionate amount of wealth in student loans. It's essentially a tax, but likely more effective.
Plan 2 repayments (loans after sept 2012 and the 25k bracket) vary from the base rate of currently about 3.3% (this is the current RPI to match inflation) and scales from RPI+0% to RPI+3% when earning 25K to 45K p/a. Not sure about plan 1 (loans before sept 2012) as theyre a bit different. Its worth noting that the loan gets wiped after 30 years too.
holy shit 3.3? Is that a fixed or variable interest rate?
These still have interest applied. Which is annoying if you're on just enough to be paying it off the interest you'll be getting if you did something like a 4th year will probably end up increasing the loan more than you're paying off. Since like 2010 it's varied between 1.5 and 1.8% APR though.
You would, if the life long de-facto debt was greater than potential gains from receiving an education. My potential earnings at the moment far outstrip anything I would have been able to get a job in without the education I have. You're not going to disincentive someone if the tax on an action is significantly less than the benefit of that action.
That base rate is calculated as the years inflation rate (RPI) so it changes yearly. The additional interest scales from 0-3% depending on how much you earn that year. Inflation and price indices (official gov.uk tracking of RPI)
State funded education is all round a much better solution.
HECS sort of does. The debt is indexed each year to stay relevant with the wage price index, which loosely follows CPI. In the 2017/18 period HECS was indexed by 1.9%, which is well below that available of a mortgage, for example.
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