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It sounds like you're comparing no credit to bad credit. If you just don't have a credit history, then you're an unknown quantity, but most institutions will s
by imgabe 8y ago
It sounds like you're comparing no credit to bad credit.
If you just don't have a credit history, then you're an unknown quantity, but most institutions will still take a risk possibly with some security. Everyone starts out with no credit so you have to start somewhere.
This is entirely different from someone who has proven themselves to be a bad risk by already refusing to repay their debts.
- tptacek 8y agoI'm not sure what more I can tell you than "everything gated on a credit check tends to deny me service" without literally showing you my credit score. You can easily live a normal life through your 20's with a bankruptcy on your record. (I don't have one, but I know people who do.)
- imgabe 8y agoFair enough, but that only proves my larger point. If you make a whole bunch of a certain type of loan, and everyone who takes that loan declares bankruptcy, that should be a pretty strong indicator that the loan is a poor risk and you should not have made the loan in the first place. Right now banks are shielded from that risk because the government backs the loan and the law forbids the debtors from defaulting, so it's basically just giving free interest payments to banks. Without loans to support exorbitant tuition, prices will have to go down to what people are actually able to afford to pay.
- tptacek 8y agoI think at this point you, me, and Harry might have a hard time finding a disagreement. All I read him saying is that making student loans dischargable in bankruptcy would upend the whole student loan system.