3 ms·
Seems to me that intermediation is the problem, though I'm not sure if I understand the US system very well. Imagine if you couldn't get a loan from a third pa
by lordnacho 4y ago
Seems to me that intermediation is the problem, though I'm not sure if I understand the US system very well.
Imagine if you couldn't get a loan from a third party, where the university lets you owe it the fees, but you cannot borrow the money from some student loans company or the government.
Then the university would figure out which people it thought would be likely to pay back the money, and which are perhaps worthwhile to fund without monetary reward. And the uni would be well placed to make such decisions.
If the money comes from a third party, the uni gets the money regardless and doesn't need to care. The lender can't be defaulted on, and so they don't care either.
- phkahler 4y ago>> If the money comes from a third party, the uni gets the money regardless and doesn't need to care. The lender can't be defaulted on, and so they don't care either. This is exactly the problem. The government guarantees "student loans" made by 3rd parties. Tuition costs have seen huge inflation over the last 25 years, second only to medical costs in the U.S. I also don't think students realize simple things like... Since money is fungible, that $5 coffee is also being paid for by the loan. They're really borrowing to pay for their lifestyle as well and don't think about that.
- lotsofpulp 4y ago> The government guarantees "student loans" made by 3rd parties. Not since 2010. https://en.wikipedia.org/wiki/Health_Care_and_Education_Reconciliation_Act_of_2010 https://en.wikipedia.org/wiki/Health_Care_and_Education_Reco...