4 ms·

As a foreigner I don't get it. Why are students allowed to get a debt that they can't pay. Why they take it?

• empath75 8y ago
  You're told from the day you start school that if you don't go to college, you're not going to 'make it'. There aren't enough scholarships to go around. So people will pay literally anything. And since they can't discharge the debt in bankruptcy, lenders will throw money at them.
  • squirrelicus 8y ago
    Lenders are also required by the feds to throw money at them. They don't have a choice. Cost of money went dramatically down, so tuition inflated something like 4x
• skizm 8y ago
  It started as a way to give low income kids access to the same education opportunities as everyone else. Banks didn’t want to risk giving out loans to low income borrowers so the govt guaranteed the loans. Once this happened everyone started taking out loans to go to college since the banks now approved anyone since the repayment was guaranteed by the govt, and since schools now had so many more applicants they kept raising prices (supply and demand). Higher prices lead to more loans which lead to higher prices, etc.
• deleted 8y ago
  [deleted]