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Student Loans are not like loans for tangible things (homes and cars). When you default on your student loan they don't take your diploma back. You keep your
by acomjean 11y ago
Student Loans are not like loans for tangible things (homes and cars). When you default on your student loan they don't take your diploma back. You keep your degree, the increased earning potential. You keep your experiences and education.
Student loans are a complex web of federal guarantees, but if basic capitalism works, by defaulting you are going to make it more expensive for the next students, who have to pay more to cover the defaulters. Some students won't be able to afford it with the added interest rates.
Seems his education helped him be successful. So why should he pay for it?
"Lee Siegel is the author of five books who is writing a memoir about money."
- fnordfnordfnord 11y ago>Student loans are a complex web of federal guarantees, but if basic capitalism works, by defaulting you are going to make it more expensive for the next students, who have to pay more to cover the defaulters. Not defaulting also seems to have the effect of driving costs up for the next students.
- grecy 11y ago> Student Loans are not like loans for tangible things (homes and cars). When they take your home or car back, they don't take back your experiences and memories you gained while enjoying those items.
- acomjean 11y agoThey can resell homes and cars and get monetary value from them. Diplomas not so much.