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I have a lot of sympathy for the individuals involved. One question... Does an insurance market exist for student loan paybacks? If not, perhaps it's time.
by mathattack 13y ago
I have a lot of sympathy for the individuals involved. One question... Does an insurance market exist for student loan paybacks? If not, perhaps it's time.
If the market doesn't exist (or can't exist) and we have sympathy for people who can't pay their loans back then we have to accept higher interest rates in returns. By having such strict laws on paying loans back, people with poor credit ratings through no fault of their own can get student loans.
Of course it would be great if people didn't need to go so far in debt to pay for school, but that's another story.
- phren0logy 13y agoI read about an even more radical proposal: make the schools themselves back the loans. If Univeristy X graduates can't get jobs that allow them to pay back their loans, University X is on the hook.
- twoodfin 13y agoHarvard can afford to let disadvantaged students in for free, but many middle and lower tier schools would become averse to admitting/financing poor or otherwise "risky" students under such a scheme.
- ams6110 13y agoI'd be surprised if you couldn't get some kind of disability insurance on a student loan. It's certainly commonly available for mortgage loans. But can't say I've looked into it.