> That doesn't mean that such people should not be able to apply for loans, it means that the consequences would have to be explained to them in terms that they

> That doesn't mean that such people should not be able to apply for loans, it means that the consequences would have to be explained to them in terms that they can understand, not the mathematical equivalent shorthand for those consequences. See my reply to the same OP: https://news.ycombinator.com/item?id=6225690 https://news.ycombinator.com/item?id=6225690 I think even explaining the math in Explain-Like-I'm-Five words would not be sufficient for most people because they might not be in a situation to fully grok it. What does $833/mo for 10 years mean to a student training to be a Radiologist? They hear salaries like $120k/yr and think $833/mo isn't a big deal. Then you end up with too many unemployed, qualified Radiologists, salaries plummet to $52k/yr, and suddenly $833/mo is significant. My point is that when people signed up for these loans, they were told it was a risk-free investment in their own life. Every investment comes with risk. That is the entire point of investments. Nobody ever treats student loans as a risk on the student-side of things. That's what needs to be conveyed more clearly.