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If you make student debt dischargable, the cost of the loan must also include the cost of insuring against borrower default. I.e. students who don't default mu
by mortehu 8y ago
If you make student debt dischargable, the cost of the loan must also include the cost of insuring against borrower default. I.e. students who don't default must pay for those who do, plus an additional amount to due to uncertainty in future default rates.
- conanbatt 8y agoWelcome to the world of lending. Thats how its supposed to work.
- deleted 8y ago[deleted]
- deleted 8y ago[deleted]
- almostApatriot1 8y agoa similar line a reasoning led to the housing crisis, didn't it? Everyone should be able to get a mortgage!
- zeusk 8y ago> I.e. students who don't default must pay for those who do, plus an additional amount to due to uncertainty in future default rates. The whole concept of interest on lending was to insure against defaulters, that is before bankers wanted their cut of the pie.