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I don't think it's fair to compare an arrangement at zero up front cost risk to the student to a full up-front cost risk to the student (where the loan also hur
by lr4444lr 8y ago
I don't think it's fair to compare an arrangement at zero up front cost risk to the student to a full up-front cost risk to the student (where the loan also hurts his credit rating) dollar for dollar. Are you also factoring in the NPV? Inflation?
- austenallred 8y agoOr... interest?
- azhenley 8y agoStudent loans dramatically improved my credit rating.
- learc83 8y agoIt's not a full up-front cost risk to students. Federal loans (90% of disbursements) qualify for income based repayment where the maximum you will pay is 10% of income above 1.5x the Federal poverty limit. If you end up stuck as a barista making $25k a year, you'll pay back very little of the overall cost over the 20 year repayment. Also if you get through a few semesters at an accredited university and decide you hate it those credits will generally transfer somewhere else. The same is not true of unaccredited programs.