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> the government should stop handing them out Minor nit: The gov't doesn't give the loans, they underwrite & insure the loans.
by mr_spothawk 4y ago
> the government should stop handing them out
Minor nit: The gov't doesn't give the loans, they underwrite & insure the loans.
- mywittyname 4y agoI had plenty of loans from the DoE. Getting the DoE into the student loan market was intentional and is seen as the first step to reworking the entire system. Navient et al are keen to keep the gravy train rolling.
- outside1234 4y agoBut there is a important point here too - these loans are issued with too low of an interest rate BECAUSE they are guaranteed by the government. Drop that guarantee and the interest rate is going to float to more of a credit card level, which will make them prohibitive for funding tuition, which will put an extreme downward pressure on tuition rates.
- mr_spothawk 4y agoI believe you are absolutely correct.
- loourr 4y agoSemantics, they should stop underwriting them.