In my latest SeeThruEdu post, I argue against the idea of income-based-repayment schemes for student loans — or anything else. Now, if rich Uncle Fred wants to lend his carefree nephew Buzz $200,000 so he can enjoy the college experience at some college and says, “Pay me back if and when you can,” no problem. Uncle Fred can be generous with his own money if he wants to be. When lenders are not in that position, however, they shouldn’t be generous, because it encourages the wasting of capital. Government shouldn’t lend money at all, but if it does, it should insist on market terms.

IBR for college loans supports the damaging idea, already rampant in America, that you don’t have to carefully think through the consequences of your actions because if things don’t go well, “society”will pick up the tab.