They're capping the wrong side. As philanthropy, they should be forgiving a loan unless the recipient makes more than x per year. By the time people are in medical school there is minimal reason to expect their parents (staring down retirement) to foot any of the bill except out of the goodness of their hearts. Mike has somehow managed to make his well-meaning donation extremely controversial.
That would set up bad incentives. Students might be more tempted to keep their salary under the threshold until the loan expires, or even to temporarily drop out of the field altogether (e.g. to raise children).
Expecting the parents to pay for their children also comes with issues, but in general successful parents do want to have successful children.
Comments
They're capping the wrong side. As philanthropy, they should be forgiving a loan unless the recipient makes more than x per year. By the time people are in medical school there is minimal reason to expect their parents (staring down retirement) to foot any of the bill except out of the goodness of their hearts. Mike has somehow managed to make his well-meaning donation extremely controversial.
That would set up bad incentives. Students might be more tempted to keep their salary under the threshold until the loan expires, or even to temporarily drop out of the field altogether (e.g. to raise children).
Expecting the parents to pay for their children also comes with issues, but in general successful parents do want to have successful children.