I was going to comment the same, this is how it worked for me in the UK when I studied (2001). I don’t know if it is still the same now, or how similar it is in detail to the proposed system in this article, but I thought it was a pretty good system as I didn’t really need to think about it. It would just get paid off in its own time when I was earning enough. You could opt to overpay if you wanted, but the rates were so low that there was no need to, probably the cheapest loan I’ll ever have!
2 Likes
If anything, that overstates how smoothly it functions. To make a long and extremely bureaucratic story short: because I had £44 left on a student loan in January 2018, HMRC took about £4,000 in incorrect repayments from me, and it was only last week that I got the last of it back. And even that took a lot of kafqaesque phone calling on my part. Part of the problem is that they effectively make self-employed people pay tax a year in advance (speaking of free loans to the government), so that £44 triggered two years’ worth of loan repayments.
5 Likes
Um, where can I find a credit card with lower than a 13% rate?
1 Like
Current rules here:
1 Like
American Express has an 8.99% APR credit card that’s as no frills as you can get (no annual fees, no discounts, no air miles). Most credits cards with cash back incentives or points have much higher interest rates because if you pay off the balance in full, who cares about the APR?
2 Likes
no really, tell us how you feel…
1 Like
Thanks! I will check that out.
3 Likes
What a lovely way to say ‘the world needs ditch diggers, too.’
1 Like
Forgot to mention that I’m Canadian, so YMMV if you’re not in Canada. Here’s what I was talking about:
If your idea of a successful career includes the phrase “Do you want fries with that?”
The day I move to Canada.
I just hope those courses include a good road map for avoiding the predatory technical schools that will promise you a good career as a dental technician or nurse… for a certain price. Because those incur student debt too, and they incur a lot of it.
4 Likes
Doesn’t it? We should be respectful of people in trades like this, and people doing this kind of work should be able to earn a comfortable living. I worked as a lightbulb changer for a while when times were tough, and I’m still friends with the guy who took over my job when I left. “Lightbulb changer” is right up there with “ditch digger” and “fry cook” in terms of the amount of sneer the title elicits, but you better believe it’s an important job. I worked hard and took pride in my work.
Anyway, I think it’s important that we develop an educational track that better serves people who choose trades. Unfortunately, I also recognize that the Republicans in our state have a goal of dismantling the public education system entirely, and this letter is probably cover for that instead of the beginning of something great for our working classes.
8 Likes
Me too. And all the other predation, from lottery tickets to pyramid schemes to payday loans. The deck is stacked against these kids.
2 Likes
Clearly, they want to party like it’s 1854!
3 Likes
At one place i worked, the job title was ‘lamp trimmer’ and it paid fairly well because of hazardous duty (in a high bay, atop tall stanchions, on rooftops, etc.). The job title shows how long that union has been around!
3 Likes
Not too long ago democrats would have passed this with flying colors in both chambers, after some courtesy song and dance.
Thank FSM for progressives who have moved the Overton window.
Counteroffer: The loan people get 10% of income over $12,450 a year up to the loan payment amount. After 10 years, or when the loan is paid off, payments cease. Any remaining balance is written off, and the account is marked paid in full.
Everyone wins!
1 Like
Why do I have the sneaking suspicion this is also underhandedly meant to put the kibosh on borrowers snowballing loans, in order to increase interest payout to the lender? Say I’m not going to be able to focus on eliminating the loans with the highest interest first, then it is just going to cost me that much more over time in paid interest.
Not a fan of handing over the control of payments to someone else, either. You know that if there’s a screwup somehow the borrower will get the shaft either way.
1 Like
