From Each According to His Earnings

by George Leef

Proposals that would make the repayment of student loans depend on the subsequent income those students earn have been much discussed lately. Oregon has put forth a vague plan along those lines and recently Brookings published a paper advocating that loan payments should depend on the income of the individuals. In this week’s Clarion Call, I argue that this is not a good idea. It would encourage more marginal students to borrow for college when our need is to discourage those who are not likely to benefit from college — at least costly programs that require considerable debt.