From dfecef55133cae5119f0f45d15a00857aca6ead9 Mon Sep 17 00:00:00 2001 From: patergentium Date: Thu, 18 Apr 2024 00:19:30 +0000 Subject: [PATCH] Delete 12-safety-net/12-01-child-education-income-lien.md --- .../12-01-child-education-income-lien.md | 24 ------------------- 1 file changed, 24 deletions(-) delete mode 100644 12-safety-net/12-01-child-education-income-lien.md diff --git a/12-safety-net/12-01-child-education-income-lien.md b/12-safety-net/12-01-child-education-income-lien.md deleted file mode 100644 index 2e1df69..0000000 --- a/12-safety-net/12-01-child-education-income-lien.md +++ /dev/null @@ -1,24 +0,0 @@ -# Children: - -This document outlines a program which provides interest-free loans - -Child or parent may apply for voucher program -* Periodic reassessment of need. - -The voucher program is effectively a revolving line of credit which may only be used to pay schooling/tuition related expenses **directly** to a schooling institution. The program does **not** pay any funds into the hands of the child or the parent. - -All interest payments on the debt instrument are chargeable directly to the government, while the bond instrument remains chargeable to the parent/guardian (i.e, the parent/guardian is liable for the principal). This is in effect a zero-interest loan to the parents. - -## Vouchers for schooling: - -* Schooling can be very expensive sort of? But -* These loans are gong to people who are unlikely to pay them off. -* The banks will just charge the state enough to cover both the principal and the interest rate (we're okay with this, because the disincentive remains priced onto the parent). - -* The bank can try to just give out extremely liberal loans to attempt to cover their own expenses. -* This program may end up causing poor people to get better schools than people who pay for schooling out of pocket -- there needs to be a mechanism for somehow limiting the amount that can be borrowed on the line of credit. -* Manage the schools' ability to "overcharge" - -Consider: -* Preparatory schools - focused on training children for a specific profession - the institution can garnish wages. -* Consider incentivizing internships and apprenticeships.