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It wouldn’t make much of a difference because the vast majority of student loans are issued by the federal government and not underwritten. This seems to come
by bradleyjg 8y ago
It wouldn’t make much of a difference because the vast majority of student loans are issued by the federal government and not underwritten.
This seems to come up fairly often. I don’t think many people are aware of the enormous size of the state banking sector in the US between educational loans and continued dominance of the residential mortgage market.
- austenallred 8y agoThis is true. About fifty percent of federal financial assets are student loans (which terrifies me). However on the margin it would make a huge difference. The most expensive programs require a mix of federal loans and federally subsidized loans. There are a few changes the federal government could make to not back loans data clearly show are going to be bad, and if those loans aren’t federally subsized they’re not happening. Or, perhaps, worst case scenario the interest rate becomes extreme. There are a lot of moving pieces.