Re:How Student Debt Reduces Lifetime Wealth
by tmnvix on Sunday June 18, 2017 @09:38PM
(#14584074)
> If $30k in student debt is 'shakling', then did we ever expect the same person to take on a $300k mortgage...
A student debt is different than a mortgage in that with a mortgage there is collateral. This reduces the risk to both parties considerably because usually the collateral can be used to settle the debt if needed.
I forget which of the ancient philosophers said it but to paraphrase: "it is basically unethical to place a mortgage on yourself (because you are the collateral)". Not too far from what you are effectively doing when taking on a student loan.
A student debt is different than a mortgage in that with a mortgage there is collateral. This reduces the risk to both parties considerably because usually the collateral can be used to settle the debt if needed.
I forget which of the ancient philosophers said it but to paraphrase: "it is basically unethical to place a mortgage on yourself (because you are the collateral)". Not too far from what you are effectively doing when taking on a student loan.