4 ms·

Would they do that or just become more aggressive at debt collection?

• BinaryIdiot 10y ago
  Maybe? But I'm not sure what good it'll do them. When someone can't get a job they're not exactly going to be paying back debt faster, even if they wanted to. I can't see how them being more aggressive could really help the situation much if at all.
  • Klinky 10y ago
    If most of their income is from guaranteed loans, then they are likely considerably less aggressive right now than they could be. Debt collection can also lead to wage garnishments. Never underestimate the desire to extract as much blood from a turnip as possible.
• dredmorbius 10y ago
  In economic policy, the Federal Reserve has as its mandate controlling inflation and unemployment. Inflation is exogenously measurable, but unemployment isn't. Rather than have the Fed measure unemployment, a seperate government agency, the Burea of Labor Statistics, does. Hence: the Fed doesn't measure what it manages. Forbidding ITT from pursuing collections, leaving that to an industry which has experience with loans (banks), and instead, leaving it to modify what it can control -- the control, the recruitment of students and instruction standards -- might result in a successful incentives alignment. You'd have to police and very heavily penalise any kickbacks or covert communications between ITT and lenders.