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Make student loans dischargeable in bankruptcy and get the feds out of student lending.
Suddenly responsible underwriting of student loans will become a thing again. Lenders will have to decide if your 4 year degree in Expressive Watercolor is a sound investment.
Suddenly responsible underwriting of student loans will become a thing again. Lenders will have to decide if your 4 year degree in Expressive Watercolor is a sound investment.
Lenders underwrite loans as a means of protecting themselves from default. It also protects the borrower from default.
How many anthropology majors would have avoided crushing debt and a useless degree?
How many anthropology majors would have avoided crushing debt and a useless degree?
"But the terms will be bad because 18 year olds don't have credit history!" they moan...
The terms are already bad. And yes, your loan terms will track against how much of a risk you pose. Perhaps spending a couple years in the workforce building credit isn't a death sentence.
The terms are already bad. And yes, your loan terms will track against how much of a risk you pose. Perhaps spending a couple years in the workforce building credit isn't a death sentence.
Or perhaps you will realize that the loan terms are not agreeable and you really don't need to spend 4 years studying Runic Literature.
The loan terms for that CS degree are probably a lot nicer though...
The loan terms for that CS degree are probably a lot nicer though...
The moral of the story is that the state artificially shielding lenders from risk is the root of the problem.
