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If the loans are guaranteed by the government and people can't discharge them, then there is almost zero risk to the creditor. How do they justify charging inte
by motohagiography 8y ago
If the loans are guaranteed by the government and people can't discharge them, then there is almost zero risk to the creditor. How do they justify charging interest higher than a government bond?
I can see why there are rumblings of loan forgiveness, as it has metastasized into something truly horrible.
https://en.wikipedia.org/wiki/Debt_bondage#Definition https://en.wikipedia.org/wiki/Debt_bondage#Definition
- smolder 8y agoI think that profitability at all levels is the core of the issue with crazy student loan debt. Why do guidance counselors steer kids toward expensive schools they can only afford through huge impractical loans? Why do overpriced schools exist in the first place? I suspect because some institutions getting rich off loan interest use their influence to encourage this. Mass exploitation of a population is best done when you can advise them to act in your best interest while convincing them its in their own, and that's best done from a position of authority. If the health of society was a primary concern then the conflicting profit motive would have been legislated out of existence, so we could maximize the benefits of an educated population for the least cost.