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As the article clearly shows, the risk in student loans is that the student will accrue more debt that they can handle and not get a high enough income to pay d

As the article clearly shows, the risk in student loans is that the student will accrue more debt that they can handle and not get a high enough income to pay down the principle, in which case the lender will end up getting their money back far far slower than planned. Just because there isn’t a risk of default doesn’t mean there isn’t any risk. If American Student loans were risk free profit at 8% the entire financial market would rush to invest, bringing about competition and driving down the rates.

mhuffman 8y ago
> end up getting their money back far far slower than planned "Their money" is where we have a disagreement. They get to create that money (nearly) out of thin air.[1] [1] https://www.investopedia.com/articles/investing/022416/why-banks-dont-need-your-money-make-loans.asp https://www.investopedia.com/articles/investing/022416/why-b...