3 ms·
Yes, entitlement is the problem: You aren't entitled to having a loan repaid if the interest rate is too high. ...or if you loan too much money to someone who
by lostdog 9y ago
Yes, entitlement is the problem:
You aren't entitled to having a loan repaid if the interest rate is too high.
...or if you loan too much money to someone who won't be able to afford it.
...or if you expect someone in a lower income bracket to pay more than X% of their income.
Common-sense laws that loosened bankruptcy and regulations on repayment amounts would fix student loans, credit cards, bad mortgages, and payday lending. Why do we always blame the person taking out the loan? The lender should have the expertise to know if a person is capable of repayment and should bear the burden of making predatory loans.
- leifaffles 9y agoTwo things you miss: 1/ Student loans are not dischargeable in bankrupty. 2/ Today, the government IS the lender. The government has created a system of incentives (even before the student loan industry was nationalized) that encourages lending large amounts of money to anybody by eliminating the risk on the part of student loan lenders. People can basically never get out of the debt, so you can lend arbitrary sums of money to Feminist Dance Theory majors and other sorts of poor-ROI nonsense. "Predatory loans" is a misnomer. Predatory government is far more accurate.