Let Them Eat Teslas

theodp writes "If you're a bright kid who wants to prepare for the 21st century workforce (PDF) by studying engineering at Purdue, the government will help your parents pay the $100,000 or so tuition tab with a 7.9% interest loan (plus 4% fees) that's likely to be non-dischargeable in bankruptcy and paid back with after-tax money. If, on the other hand, you want to buy a tricked-out $100,000 Model S, Tesla has teamed up with the government, Wells Fargo, and U.S. Bank on what it calls a 'Revolutionary New Finance Product' that enables those who play the game right to avoid paying sales tax, get the government to pick up the first $15,000 (no down payment needed!), and also receive a 2.95% bankruptcy-dischargeable loan for the balance, the payments for which could be tax-deductible. Yep, 'Revolutionary' may be about right!"

Comments

Collateralized vs Non-Collateralized Loans

[trout007]

They can always repo your car.

This is why Education should be funded where the risk is borne by the one making the loan. The repayment terms should be based on a percent of the students income for a fixed number of years.

These guys are trying to do it.

https://www.upstart.com/

Re:Collateralized vs Non-Collateralized Loans

[TheRealRainFall]

I mean that the state is an investor in it's citizen as opposed to a private corporation. With this, they claim rights over the individual much like a corporation would if the state permitted.

Re:Lease Tesla

[coinreturn]

Sell Tesla.

Use funds for college.

Minor detail: if you have a loan against that car, they hold the pink slip. Good luck selling it without one.

Not really the same

[mschiller]

While it would be easy to say Government just prefers the sheeple broke and stupid... These really aren't the same. Cars can be repo'ed.. Your education can't be repo'ed.. Further from a Govt perspective the return in tax income from your education is risky.. You might never finish school. Might end up working in India and not paying taxes.. You might never repay those loans if given the choice because you won't lose anything.. The car might seem like a loss, but you will definitely pay taxes on stuff for the car like tires, registration and property taxes etc the employees who built the car will pay income tax etc. Plus there is the political side of green jobs.....

Re:Easy: buy a tesla, go to school

[DigitalReverend]

Apparently you have never financed a vehicle. The bank holds the actual title, you only get a certificate of registration. You cannot sell the car without the title, and the bank will not release it without the loan being paid off.
So if you tried to sell the car, the bank would take the money and you'd end up with nothing.