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From: bwm@ccieng2.UUCP ( Brad Miller)
Newsgroups: net.flame,net.politics
Subject: Re: The Great Educational Debate
Message-ID: <148@ccieng2.UUCP>
Date: Mon, 9-Apr-84 12:48:17 EST
Article-I.D.: ccieng2.148
Posted: Mon Apr  9 12:48:17 1984
Date-Received: Wed, 11-Apr-84 00:24:18 EST
References: <381@hogpc.UUCP>
Organization: Computer Consoles Inc., Rochester, NY
Lines: 31

The argument seems to be centering now on student loans. The
main problem with these loans seems to be twofold, 1) the
high interest subsidy, paid by taxpayers, and 2) the high rate
of default, paid by taxpayers. If you want a workable system, may
I suggest the following:

I am not opposed to student loans. I had them myself. The criteria for
getting the loan should be total availability to ANYONE attending college
full time at an accredited university. There is no sense in giving bennies
on the basis of income or need, etc. This is inherently socialistic.

Now, here's where we save some money. Make the payback period 15 years
instead of the current 10 (or flexible depending on interest) and charge
the CURRENT interest rate (thus no subsidy). Still charge (as they do now)
for the insurance premium.

Then, to cure the default problem, let the IRS collect defaulted loans. If
you accept the loan with the guv's guarentee, you give up this much privacy.
You needed your SS number to get the loan, so the IRS knows damn well
where you are, and can attach your salary if need be to collect. Treat
the defaulted loan just like taxes owed the guv, and keep charging interest
at the current rate. The subsidy of the taxpayers into the program would
be quite low (admin costs, and collection costs, but we are paying that
anyway), and we are still providing credit towards an education to those
without a good enuff credit rating to gain a personal loan on their own.

Comments?
Brad Miller

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