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Agreed. The only thing I can think of is that perhaps the interest payments on loans to low-risk borrowers subsidize the loans to high-risk borrowers who defau
by kareemm 11y ago
Agreed. The only thing I can think of is that perhaps the interest payments on loans to low-risk borrowers subsidize the loans to high-risk borrowers who default.
- acrefoot 11y agoMy reading of the article is that the interest gains from more creditworthy borrowers help offset losses from loan forgiveness and defaulting borrowers.