In an executive order issued in June, President Obama expanded a little-known provision called income-based repayment that allows borrowers to limit their monthly federal loan repayments to 10% of their incomes, and forgives any remaining debt after 20 years. That’s down from 15% and 25 years, respectively.
Using presidential math, you borrow $300,000. from the student loan program and when your done with school you pay it back plus interest. Lets say, you get a job for $40.000 a year, pay the government back $4,000. a year, times 20 yrs. = $80,000., you owe nothing else. Now the tax payers owe $300,000. plus interest= $400,000. minus the $80,000. you paid back.
The tax payers are on the hook for $320,000.
Every college student would have to make a minimum of $200,000. a year, every year in order to pay the tax payers back.