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Allow borrowers to default on student loans. Then banks can charge an appropriate interest rate for the credit risk of the borrower, based on pursued major (amo
by theseatoms 10y ago
Allow borrowers to default on student loans. Then banks can charge an appropriate interest rate for the credit risk of the borrower, based on pursued major (among other things).
- LyndsySimon 10y agoThat's so crazy, it might just work...
- ssambros 10y agoAre there any policies in place that prohibit discrimination of borrowers based on the major pursued?
- GrinningFool 10y agoIt seems that could open banks to more liability: - If they encourage a path via low-rate loans in a field that tanks - If they prevent a path via high-rate loan that turns out to be much more lucrative than the one they encouraged.
- deleted 10y ago[deleted]
- twblalock 10y agoVery few students would qualify. Most of them have no credit history and little to no income. If it were easy to default, the entire system would collapse. Obviously the impossibility of defaulting and the ease of getting loans feeds the problem, but what you are proposing would destroy the system rather than fix it.
- bluGill 10y agoVery few students in worthless degree would qualify. Engineering and medical degrees would do much better because good students would not default as the degree is part of what drives their job.