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At least in a house loan they will check your income and job before giving you the loan. For college they will give anyone a loan for an immense amount of money

At least in a house loan they will check your income and job before giving you the loan. For college they will give anyone a loan for an immense amount of money without verifying anything.

aerostable_slug 5y ago
The problem comes in when you try to verify someone's ability to repay the loan. It's not just one's choice in major — for example, the graduation rate for Historically Black Colleges & Universities is only 35%. There are significant deltas between GPA, test scores, and college success rates between various ethnicities. Further, there are significant differences in the repayment of student loans between various ethnicities. I would not want to be on the team that does a risk assessment with these facts as inputs, because the results would be politically untenable.
- hooande 5y ago
  - aerostable_slug 5y ago
    That's out of line and I'd appreciate an apology. I was simply pointing out the most politically hot topic that such a risk assessment would run into, but if you prefer to put class first that is your prerogative. Of course, with even a small amount of research you might find that these issues tend to collide and ethnicity is what gets talked about the most. You might also find out that the disparate rate of repayments between ethnicities is perhaps the leading issue for those who favor debt forgiveness, many of whom frame it as a civil rights issue [0][1][2][3]. That said, it's perhaps a moot point because Biden's not forgiving anything, and the way things are looking I don't imagine Congress will any time soon either. [0] https://www.cnn.com/2021/10/20/us/black-borrowers-debt-study/index.html https://www.cnn.com/2021/10/20/us/black-borrowers-debt-study... [1] https://www.cnn.com/2021/10/06/us/black-student-loan-crisis/index.html https://www.cnn.com/2021/10/06/us/black-student-loan-crisis/... [2] https://www.bloomberg.com/news/articles/2021-12-20/calls-for-biden-to-cancel-50-000-student-debt-could-boost-black-wealth-by-40 https://www.bloomberg.com/news/articles/2021-12-20/calls-for... [3] https://www.cnbc.com/2021/11/04/66percent-of-black-borrowers-say-they-regret-taking-out-student-loans.html https://www.cnbc.com/2021/11/04/66percent-of-black-borrowers...

At least in a house loan they will check your income and job before giving you the loan. For college they will give anyone a loan for an immense amount of money without verifying anything.

aerostable_slug 5y ago

The problem comes in when you try to verify someone's ability to repay the loan. It's not just one's choice in major — for example, the graduation rate for Historically Black Colleges & Universities is only 35%. There are significant deltas between GPA, test scores, and college success rates between various ethnicities. Further, there are significant differences in the repayment of student loans between various ethnicities. I would not want to be on the team that does a risk assessment with these facts as inputs, because the results would be politically untenable.

hooande 5y ago
- aerostable_slug 5y ago
  That's out of line and I'd appreciate an apology. I was simply pointing out the most politically hot topic that such a risk assessment would run into, but if you prefer to put class first that is your prerogative. Of course, with even a small amount of research you might find that these issues tend to collide and ethnicity is what gets talked about the most. You might also find out that the disparate rate of repayments between ethnicities is perhaps the leading issue for those who favor debt forgiveness, many of whom frame it as a civil rights issue [0][1][2][3]. That said, it's perhaps a moot point because Biden's not forgiving anything, and the way things are looking I don't imagine Congress will any time soon either. [0] https://www.cnn.com/2021/10/20/us/black-borrowers-debt-study/index.html https://www.cnn.com/2021/10/20/us/black-borrowers-debt-study... [1] https://www.cnn.com/2021/10/06/us/black-student-loan-crisis/index.html https://www.cnn.com/2021/10/06/us/black-student-loan-crisis/... [2] https://www.bloomberg.com/news/articles/2021-12-20/calls-for-biden-to-cancel-50-000-student-debt-could-boost-black-wealth-by-40 https://www.bloomberg.com/news/articles/2021-12-20/calls-for... [3] https://www.cnbc.com/2021/11/04/66percent-of-black-borrowers-say-they-regret-taking-out-student-loans.html https://www.cnbc.com/2021/11/04/66percent-of-black-borrowers...