Yeah I don’t agree with his numbers at all. If the graduate makes 150k a year that not really a problem like you just pointed out.

Where I see the bad actor problem the university not the student. By running the income based repayment down to 5% from 10% almost +250% poverty line exemption everyone is better off doing income based repayment. That’s good for the student but it completely removes any price sensitivity because even at a state school you basically cap out your income based . Now there really isn’t any difference between getting the 100k loan or the 400k loan. It’s income based repayment for the next 20 years for everyone

. Of course in practice the 400k loan will balloon to something like 1m and when it gets forgiven it will get taxes at 35% making it almost a balloon loan so the student still loses but scammy university isn’t going to tell people that they will have gotten paid long ago. They will just Jack up their prices advertise income based repayment and take in the profits shifting costs to taxpayers.

The republican concept of “moral hazard” is a real problem it just doesn’t really apply to individual people like republicans say it does. Corporate entities do suffer from moral hazard, as soon as a loophole opens up they rush to exploit it and this is one big loophole