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> Credit would dry up overnight and interest rates would go through the roof on many loans. That's a silly thing to say. Will the Moon fall down too? > Also
by jellicle 9y ago
> Credit would dry up overnight and interest rates would go through the roof on many loans.
That's a silly thing to say. Will the Moon fall down too?
> Also why would anyone ever offer a student loan under these conditions?
Probably profit. Don't you think? Isn't that usually why loans are made? You understand that this is a recent change to the law (1998) and prior to that, student loans still existed and worked fine?
- pfisch 9y agoWhy would you extend a massive loan to someone who is broke, has no credit, and can immediately discharge the debt. They could and many of them would immediately discharge the entire balance of the loan upon graduation by declaring bankruptcy. They don't offer standard 40k+ loans to people with no credit at any rate. Also even if they did offer that the interest rate would be insane because you are dealing with so many defaults. That would not really make the situation better.
- Aeolun 9y agoMany is not the same as most. Most people would be perfectly happy to pay off their debt unless they were literally unable to.
- kalleboo 9y ago> Why would you extend a massive loan to someone who is broke, has no credit, and can immediately discharge the debt Ask the people that offered student loans in 1997