Loans to students by the government (called HELP loans) are paid back by a levy on your taxable income that only kicks in once you reach a certain income level.

So for example, someone earning A$55,000 pays an extra 4% levy on their taxable income with that 4% reducing their HELP loan balance.

This means the repayment is coming out of post-tax income: its income you would otherwise have received but which instead goes to the government.

If you take out private loans to fund further study then the interest MAY be tax deductible if the purpose of the study is to improve your earning prospects in your current field of work. If its to train for an entirely new field its not deductible.

(http://www.autoadmit.com/thread.php?thread_id=3769804&forum_id=2#34491153)

Public universities should be free or nearly free as they are in many civilized nations. The federal government isn't "distorting" the market, it is applying a band-aid to the problem of state legislatures continually raising the cost of higher education beyond what most ordinary citizens can afford. The main purpose of universities should be to prepare citizens to compete in the economy, not for absurd amenities, residences, sports, etc.

And it's insult to injury that the federal government itself preys on students too with the policies mentioned ITT.

(http://www.autoadmit.com/thread.php?thread_id=3769804&forum_id=2#34489342)

The loans would NOT be given at the 7.5% or whatever rates if not for fed government

(http://www.autoadmit.com/thread.php?thread_id=3769804&forum_id=2#34489356)

https://www.forbes.com/sites/prestoncooper2/2017/08/04/why-government-doesnt-profit-from-student-loans/#67a8ba49eb63

(http://www.autoadmit.com/thread.php?thread_id=3769804&forum_id=2#34489385)

Just do apply a one-time exception to government accounting standards to suit your argument.

(http://www.autoadmit.com/thread.php?thread_id=3769804&forum_id=2#34489482)

https://blogs.wsj.com/economics/2018/02/13/the-student-loan-problem-that-wont-go-away/

(http://www.autoadmit.com/thread.php?thread_id=3769804&forum_id=2#35401516)

Also, government intervention should include no bankruptcy availability

(http://www.autoadmit.com/thread.php?thread_id=3769804&forum_id=2#34489505)

im all for funding a solid, low-cost public system of community colleges, trade schools and state universities and little in the way of loan guarantees. it's absurd that dumbasses can take out 5- or 6-figure loans to pay for bullshit art degrees.

(http://www.autoadmit.com/thread.php?thread_id=3769804&forum_id=2#34489407)

(http://www.autoadmit.com/thread.php?thread_id=3769804&forum_id=2#34488943)

This addresses loan repayment. Default rates continue to rise and student loans are the biggest form of consumer debt. This would encourage repayment and lower defaults.

(http://www.autoadmit.com/thread.php?thread_id=3769804&forum_id=2#34489435)

What they should do is allow the loans to be dischargeable in bankruptcy. LOL at any loans being given out then.

You won't recognize/admit that a huge part of the problem is that we don't need to be sending every kid to 4 years of partying/studying dumb shit for 10s of thousands of dollars a year.

Until you recognize that, your analysis of it is misguided and not worth listening to.

(http://www.autoadmit.com/thread.php?thread_id=3769804&forum_id=2#34489519)

I not only recognize this, I agree completely. Like I said, cost and culture are separate issues and can't be addressed with a single policy. You think Congress could write a law tomorrow that no universities should cost more than $20k/year? Or that idiots with a 2.7 GPA shouldn't go to UC Santa Cruz and study art history?

It's pie in the sky thinking to think that is remotely achievable overnight.

My analysis is far more narrow. People should be able to pay for education tax-free. It'll never happen because we're nothing more than infinitesimal components in long-term government revenue projections that include getting taxed up-front, then paying penurious penalties for 25 fucking years.

(http://www.autoadmit.com/thread.php?thread_id=3769804&forum_id=2#34489580)

Interest and tuition should be deductible.

Bankruptcy should be available.

(http://www.autoadmit.com/thread.php?thread_id=3769804&forum_id=2#34491357)

That's where bankruptcy comes in.

Reintroduce loan dischargeability and create some level of claw back against the colleges that fail to produce productive graduates.

The sting of disgorged money will convince colleges to make reforms.

(http://www.autoadmit.com/thread.php?thread_id=3769804&forum_id=2#34491352)

And, as with other business investments, the debt should be dischargeable in bankruptcy.

When the threat of bankruptcy looms, lenders (including the feds) will be more prudent and put pressure on colleges to not be such spendthrift, irresponsible fuckups. And, if necessary, we can create some sort of partial clawback from colleges to tighten the incentives link.

(http://www.autoadmit.com/thread.php?thread_id=3769804&forum_id=2#35401675)