With graduation upon us, many young people will have to face the harsh reality of paying back their student loans very soon.
College costs have risen every year, and this year is no different. A new record - an average $22,000 will need to be repaid by your 22 year old friend who aspires to become a writer, or a social worker, or a musician.
Personally, I wish I only owed that much. I've been paying on mine for 5 years now and I'm not close to that number yet.
Most of these young people end up taking jobs that give them the most money, not necessarily the jobs that they dream about.
The host of the NPR show suggested something absurd. But the more I thought about it, the more I think he was on to something.
He said that maybe the Federal Fund that allows us to borrow student loans at such a low rate should be repaid at a flat 10% of one's income for 10 years. Those who earn more will make up for those who earn less. The numbers could be adjusted to make it work. But what if you knew your loan time was fixed and the amount was never too much of your income?
Before you get vigilante on me, you have to admit that something's broken. And maybe it would allow people to follow their dreams instead of settling for whatever they can get.
Sallie Mae lobbyists would have a heyday with this, I'm sure.
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