I’m not sure how discretionary pay is defined but even if you assume they must pay 10% of gross pay the biggest loan a typical college hire (making $45K per year with 3% annual raises over 20 years) could pay off completely is $62K.
So what is to stop a student from borrowing as much as he can—$100K, $150K, whatever, and using the extra money to pay off just the $62K portion of the student loan!
For my son’s former college roomates now making minimum wage at Starbucks the most they could pay off over 20 years with their own money is $23K.
Yep.
It’s a recipe for cheating and financial disaster.
It will be a race to the bottom to figure out how to have as little discretionary income as possible, so as to pay back the least amount of student loan debt possible.
Corrupting and corrosive.
Like all Socialist programs.