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> What are the odds the "loan market" will blow up and need a public bail-out, which will be turn out to be vastly more expensive for tax payers than the free f
by vonmoltke 7y ago
> What are the odds the "loan market" will blow up and need a public bail-out, which will be turn out to be vastly more expensive for tax payers than the free fee and maintenance grants provided by other countries?
Virtually zero, because almost all student loan debt is already held by the Department of Education. There is no "loan market" to speak of.
- repolfx 7y agoYou can also see that as meaning the odds are 100% that it'll need a public bail-out - it'll just be a budget transfer to or writeoff for the DoE instead of a bail-out of private sector lenders. Depends how you define 'bail out' :) That said I'm not sure how a loan writeoff is more expensive than just paying the fees outright. Presumably public subsidy is always going to be more expensive than a student loan system.
- vonmoltke 7y agoThere is no definition of "bail out" that is applicable to an organization simply shuffling money around its own budget.