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In the United States at least, a bank who is offering a subprime loan is taking the bulk of that risk. Student loans are guaranteed by the federal government.
by gunapologist99 6mo ago
In the United States at least, a bank who is offering a subprime loan is taking the bulk of that risk.
Student loans are guaranteed by the federal government. That is not the same thing at all.
- nickpinkston 6mo agoDuring the 2008 Crisis, it was mortgage holders who got fucked and banks made whole, so risk asymmetries go far beyond just student loans.