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Non subsidized loans are almost impossible to obtain at anything remotely close to the rate the subsidized loans offer. The best I was offered was 15%. At that
by nkassis 17y ago
Non subsidized loans are almost impossible to obtain at anything remotely close to the rate the subsidized loans offer. The best I was offered was 15%. At that point it makes more sense to just not go to school.
Unsecured debt like student loans has incredible risks and the laws in the US aren't very strong in favor of forcing people to repay so a lot choose to just ignore the loans causing them to be even riskier and screwing it for the people who plays fair. Eliminating the subsidy without looking at everything else in play here is dangerous.
- gojomo 17y agoExcept the subsidy isn't going away -- it's just being limited to the feds' own Department of Education loan program, which will then mea less diversity in process/administration. I doubt that will mean loan policies become more stingy; being stingy (even when required by a clear-eyed cost-benefit analysis) is not what the feds are good at.