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Student loans are guaranteed by the federal government, right? Thats why banks dont care. Its just the private student loans banks worry about.
by Eire_Banshee 8y ago
Student loans are guaranteed by the federal government, right? Thats why banks dont care. Its just the private student loans banks worry about.
- blancheneige 8y agocorrect: https://studentaid.ed.gov/sa/ https://studentaid.ed.gov/sa/ this is the subprime bubble all over again, with the govt providing a risk free opportunity for private entities to maintain the insane price runaway until it all comes crashing down.
- zone411 8y agoIncorrect. The private loans are no longer guaranteed by the government: https://en.wikipedia.org/wiki/Student_Aid_and_Fiscal_Responsibility_Act https://en.wikipedia.org/wiki/Student_Aid_and_Fiscal_Respons...
- godelski 8y agoYes. But my problem with it is that this rule was written as a solution for a problem whose roots dig far deeper and need to be addressed there, not at this level. Making this an unintended side effect. But I think you need to address the real problem too.