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There's a trillion dollars of liability we're talking about. I'm OK with some forgiveness, but if and only if the Government gets out of the student loan busine
by UpDownLeftRight 10y ago
There's a trillion dollars of liability we're talking about. I'm OK with some forgiveness, but if and only if the Government gets out of the student loan business. (Watch tuition drop like a rock if this happens!)
- dkrich 10y agoAnd if guarantees for the loan companies are removed and the inability to free yourself from it in bankruptcy. Essentially move the 100% of the risk that borrowers currently have and move a nice portion of it to the lenders so they both bear the burden of the loans can't be repaid. Imagine if banks had zero risk when providing home loans. I don't think it would be too difficult to buy a house you couldn't afford and quickly the price on homes would be driven up. The student loan industry is so completely fucked and needs to be reformed before it ruins our economy.
- DrScump 10y agoAnd if guarantees for the loan companies are removed and the inability to free yourself from it in bankruptcy. Then why would the loan companies do student loans at all except at exorbitant rates (thereby making the responsible students pay more for those who aren't excluded altogether)?
- dkrich 10y agoThey wouldn't. That's the point. You shouldn't be able to borrow $150k+ without some collateral or a 20% down payment. I believe that if this happened, you'd see tuition rates plummet. But it won't until some catastrophic economic event occurs because the student loan industry is predatory and corrupt. Essentially ruining people's lives by selling them a lie in the name of "investing in your future."