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Bingo... If student loans are forgiven, I’m signing up for aviation school just for the thrill of it.
by benjohnson 6y ago
Bingo... If student loans are forgiven, I’m signing up for aviation school just for the thrill of it.
- RobertRoberts 6y agoHow is it any different than getting into credit card debt or taking out a loan for a Ferrari? Banks are _supposed_ to evaluate the risk of a loan, not just give it out without consideration.
- RhysU 6y agoFederal student loans have a fixed interest rate and therefore cannot be adjusted based on the risk of the borrower to the extent that a credit card or Ferrari loan can. Private student loans can adjust rates for risk. Should private student loans become increasingly expensive as voters' appetites for federally mandated loan forgiveness increase?
- RobertRoberts 6y agoPlenty of loans have a fixed interest rate. But you have a point that the loan is supposed to have federal backing/protections would make it harder to justify releasing these loans. But I would argue that predatory pricing against students would negate that.
- RhysU 6y agoI didn't mean fixed vs variable rate loans. Sorry for being unclear. I meant that Congress sets the allowed Federal student loan rates. https://www.forbes.com/sites/robertfarrington/2020/05/12/2020-2021-federal-student-loan-rates-drop-to-record-lows https://www.forbes.com/sites/robertfarrington/2020/05/12/202...
- jayd16 6y agoI don't think you guys realize the loans would dry up for frivolous schooling. The bank would understand you could file for bankruptcy and evaluate the loan accordingly.