ul.share-buttons{ list-style: none; padding: 0; } ul.share-buttons li{ display: inline; }

Student loan payments should be based on annual income.

Agree. A college is offering you a service that is intended to prepare you for financially supporting yourself in a specific field. If you fail, it reflects on their failure.

Disagree. College is an opportunity provided to admitted students. Success is more defined by the student (the customer) than the school.

Yeah but it's irresponsible for colleges to charge as much as they do for majors they know are incredibly difficult to find steady work in post-graduation.

Yeah but those majors or areas of studies exist because there is demand. College is supplying a product that students are seeking out.

Fine but in terms of paying back student debt, schools should not expect everyone to pay back their loan at the same rate. Because they're not giving out degrees that pay at the same rate.

Fine but the earning potential of a degree has nothing to do with the college. The market determines what a person should be paid depending on supply of employees, location, level of training required and more.

Ok but considering how many schools are not private for-profit institutions, shouldn't they give lower-earning graduates more flexibility in paying back loans to avoid a huge number of defaults from those that simply can't pay on time?

OK but who is going to draw those lines that determine what degrees, income, or personal finances will justify paying less of one's loan back, or at a slower rate? There are too many variables and it's not feasible.

Sure but what about just adjusting loans so different students pay different amounts back? For example colleges are already charging different prices depending on if someone is an out-of-state student or in-state. Clearly they can make different rules for different people.

Sure but large universities have a lot of expenses they wouldn't be able to cover if they started to decrease the amounts students paid back. Athletics, facilities, employees, and the list goes on. These are recurring costs that can't fluctuate just because the economy isn't providing enough jobs for all degrees.

But if this trend continues, we're headed towards a bubble where many colleges will have to close down because either too many students default, or more and more students opt for alternative education that won't result in so much debt.

But demand for getting into quality schools ISN'T going down, it's rising. The underperforming universities might get weeded out in the next decade, but interest in attending 4-year colleges will continue to rise and students will continue having to pay for the experience regardless of how much they earn after graduation.

 

The Devil's Advocate blog is an experimental format that poses a question, then has two opposing voices share their thought process as they defend why they agree or disagree. Learn more about the Devil's Advocate card game here. Sign-up below to get on the pre-order list.