3 ms·

then all student loans would be be via the government, as why would any financial institution loan the money at 0% even more so now, with the level of default t

then all student loans would be be via the government, as why would any financial institution loan the money at 0% even more so now, with the level of default that high? Is that possible, certainly, is there enough will from the people of the U.S. to make it a priority to pay an increase in taxes, no. I think people should be responsible with their choices and that these sort of debts should require a class be taken before you have access to this level of debt.

m463 6y ago
There could be a case made for educated people paying more taxes over the years, so in that respect there could be some "externalities" to support a zero interest rate. That and the fact that large institutions are paying very little to borrow money nowadays. So maybe there is an argument for a "wholesale" interest rate. I thought it is also impossible to default on student loans.
- Meph504 6y ago
  From the banks perspective to make the money back, that it takes for a lot of people to payback their student loans, means they end up charging massive interest. I don't like to see people placed in a financial situation that is a massive hardship, but the details were there, they weren't tricked, it's not like they are people loan sharing these loans. The people go to them, have the terms presented and seemingly take the loans that put them in a world of hurt. Many of these loans, have you building interest the whole time you are in school. So you end up owning principal + 4 years interest the day you graduate, that's a bad deal that students take every semester. And you can't easily discharge the debt, but tons of people just don't pay their loans back. And many more that take 10 times as long as they agreed to.
sjg007 6y ago
>then all student loans would be be via the government They already are effectively. Private student loans are for the difference between what the government will loan out at for the tuition/cost of living costs. The government doesn't guarantee them. The problem is you can't discharge private student loans in bankruptcy. So they are personal loans that get special treatment.

m463 6y ago

There could be a case made for educated people paying more taxes over the years, so in that respect there could be some "externalities" to support a zero interest rate. That and the fact that large institutions are paying very little to borrow money nowadays. So maybe there is an argument for a "wholesale" interest rate. I thought it is also impossible to default on student loans.

Meph504 6y ago
From the banks perspective to make the money back, that it takes for a lot of people to payback their student loans, means they end up charging massive interest. I don't like to see people placed in a financial situation that is a massive hardship, but the details were there, they weren't tricked, it's not like they are people loan sharing these loans. The people go to them, have the terms presented and seemingly take the loans that put them in a world of hurt. Many of these loans, have you building interest the whole time you are in school. So you end up owning principal + 4 years interest the day you graduate, that's a bad deal that students take every semester. And you can't easily discharge the debt, but tons of people just don't pay their loans back. And many more that take 10 times as long as they agreed to.

sjg007 6y ago

>then all student loans would be be via the government They already are effectively. Private student loans are for the difference between what the government will loan out at for the tuition/cost of living costs. The government doesn't guarantee them. The problem is you can't discharge private student loans in bankruptcy. So they are personal loans that get special treatment.