I agree it's very similar to the strategic default discussion. Does anyone here hold separate views between strategic default and "purposeful" IBR? Note that, as others mention, it may not even be economically beneficial to purposely keep your income low. Likely a person with high earning potential would come out ahead just doing standard repayment (consider that Lawyers at bi firms can easily save $100k/year.)
I don't have a problem with the public paying for education. See the mythical lands of Europe, where the grad shool is heavily subsidized.
I see them differently. For one, there is significantly more analysis that goes into giving someone a mortgage versus a student loan, for better or worse. If the creditor poorly assessed the value of a home, both present and future, that's on them as much as the borrower. Plus, they can take back the house which has at least some value to them.
On the other hand, student loans are almost a public good, intended to give access to education. Granted, they're not perfect, but that's at least the general intent of the program. There's a lot less assessment of credit worthiness & return on investment and lot more of an emphasis on general access to higher education in the intent.
I'm not saying I necessarily think using IBR as Root of Good is is immoral. I haven't made a single payment on my subsidized loans since graduating in May 2011 and currently my IBR payments are based on my income from 2011 (hint, about 1/4 of my income now, and that's totally discounting what my husband makes). So far be it from me to argue. But I'm not sure that IBR can be directly correlated to strategic default.
Also, can I just say, that the thing that drives me nuts about student loans is that they're not FAIR because they keep changing the rules. I'm more pissed that Root of Good got to take out subsidized loans for grad school at an effective .75% rate and I can't get anything but unsubsidized at 7 something. Not to mention how I am one year off from qualifying for the income based repayment plan (not that I need it, it's just aggravating). I just wish Congress could make up their minds already.