This would be a great idea if the schools had some skin in the game too. I would adjust the plan to have schools not get paid right away. The schools income will also depend on future earnings of the student.
As govt makes it easier for students to attend school, though guaranteed loans and plans such as these, schools raise their prices to suck up the benefit instead of allowing the benefit to go to the student. Also, some schools lower their qualifications for attending and graduating. They dont care if you're educated because they have a guarenteed payment from you and the govt, regardless of how well they educated you.
With a fix percentage of salary, the school has an interest in getting you educated so you can pay them back with a good high paying job. They can only earn more money if they make you a better educated student.
As govt makes it easier for students to attend school, though guaranteed loans and plans such as these, schools raise their prices to suck up the benefit instead of allowing the benefit to go to the student. Also, some schools lower their qualifications for attending and graduating. They dont care if you're educated because they have a guarenteed payment from you and the govt, regardless of how well they educated you.
With a fix percentage of salary, the school has an interest in getting you educated so you can pay them back with a good high paying job. They can only earn more money if they make you a better educated student.