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Yes, it would encourage banks to start lending because they have you for the rest of your life to force you to pay. Those kids get loans they couldn't otherwis
by gnaritas 15y ago
Yes, it would encourage banks to start lending because they have you for the rest of your life to force you to pay. Those kids get loans they couldn't otherwise get because banks know they have them by the balls.
- luser001 15y agoBut I wouldn't use the word 'subsidy' to describe that situation.
- gnaritas 15y agoMaybe you wouldn't, but many people would. The government is encouraging behavior with law and giving the banks something that drastically lowers the risk of lending; that something is guaranteed access to a persons future earnings. I call that a subsidy, even if it's not a direct cash payment.