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What's your opinion on Australia's Student Loan system
Offline SmG TotallyNotBuong

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#11
RE: What's your opinion on Australia's Student Loan system

(04 Jul 2019, 03:29 AM)MeteorShower16 Wrote: The Tuition Costs in America are really high but i think this is a cheaper Alternative to making all of it Tax funded therefore Free at the point of use

For example, consider the possibility of an income-based repayment system. For some former college students in the U.S., that is already a reality. They are able to have the repayment of their student loans tied to a small percentage of their incomes. And if they earn below a certain threshold, then they don't have to make any payments. After 20 to 25 years, whatever is left on their loans is written off, as long as they have consistently kept up with all of the payments that were due. The problem, currently, is that this option is only available to low-income people who can prove that they are experiencing financial hardship.
But what if loans with income-based repayment were available to every student? You would be able to attend college, university, or trade school without having to pay for tuition while enrolled. Then, after you left school, you would only have to pay an affordable percentage of what you earned (or, if you didn't earn much, pay nothing at all until your income rose). The more money you earned, the quicker you would pay off the loan. And if your income stayed low, you would have the peace of mind of knowing that your loan obligations would eventually expire.
That's exactly the type of system that Australia uses through its Higher Education Loan Program (HELP). Plus, no interest is applied to the program's student loans. And for those earning incomes above a reasonable threshold, the repayment percentage ranges from only four to eight percent, which is very affordable. On average, it takes just over eight years for an Australian graduate to repay a HELP loan. Of course, many loans will never be fully repaid (roughly 17 percent of them). But the system has been designed to allow for that.
With a system like HELP, college graduates have the freedom to take on lower-paying jobs while they get established. And it provides an incentive for aspiring artists, writers, musicians, philosophers, and other visionaries to pursue an education and develop their talents without worrying about the costs. After all, the world needs such people. Our future would be bleak without them.
So an income-based repayment system represents a compromise. Certainly, taxpayers would still have to help fund it since not all loans would be repaid. But the tax requirements would likely be much lower compared to what a tuition-free system would require. And such a system would also put some of the onus back on students. It would remove important obstacles to higher education without removing accountability or a sense of ownership.

Btw I don't think many of those not being repaid back is a huge deal since the tax funding would allow for it plus the tax requirements are much lower than universally funding college for everyone
Australia exist???
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10 Jul 2019, 06:57 PM
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Offline «SmG» Pandora

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#12
RE: What's your opinion on Australia's Student Loan system

Do I really need to read this long paragraph lol
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11 Jul 2019, 01:45 AM
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Offline Linamium

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#13
RE: What's your opinion on Australia's Student Loan system

Meh too lazy to read Kappa
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11 Jul 2019, 05:20 AM
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