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You can't get a public loan for $200k. Public loans max out at around $60k. The OP was talking about government backed loans being predatory. And someone with
by sarchertech 5y ago
You can't get a public loan for $200k. Public loans max out at around $60k. The OP was talking about government backed loans being predatory.
And someone with $60k in public loans most certainly can dig themselves out of that hole, because repayment is capped at 10% of disposable income, and it is cancelled after 20 years.
- deleted 5y ago[deleted]
- lotsofpulp 5y agoI was under the impression that private student loans were also guaranteed by the government, but based on my searches trying to source my information, it seems Obama administration changed this since I went to college.
- learc83 5y agoHere's what happened. Federal loans have existed for a long time. The Federal government would guarantee loans made by private organizations. However, these were always "Federal loans", the Federal government controlled the interest rate and the maximum amounts available. The government under the Obama administration changed things so that "Federal" loans instead of being made by private organizations and backed by the government, were directly distributed from the treasury. However even before this, there were separate Federal and private loans, and the only way to get to $200k (for undergrad) was to get unsubsidized private loans that weren't backed by the government.
- lotsofpulp 5y agoThanks, I did not know that. What is a subsidized private loan be unsubsidized private loan?