Re:I've Paid $18,000 to a $24,000 Student Loan, and I Still ...
by sdhgaiojfsa on Sunday May 20, 2018 @09:07AM
(#17112538)
> Well, maybe it would have been better this way.
I don't deny it. There are considerations in both directions. You could also imagine a system of universal rate setting, where you can only offer loans to potential engineers if you do so to art students as well. You could imagine genuinely allowing a free market in student loans. There are a lot of possibilities, each of which would fall at different places on the multi-dimensional optimization problem that we've got in front of us.
But I argue that if you want folks to offer student loans, and don't want lenders to discriminate against certain majors, and don't want interest rates >10%, and want principles on the order of >$100k, you probably need to prevent discharging the loan in bankruptcy. You can't get all those other things and dischargeable loans at the same time.
I don't deny it. There are considerations in both directions. You could also imagine a system of universal rate setting, where you can only offer loans to potential engineers if you do so to art students as well. You could imagine genuinely allowing a free market in student loans. There are a lot of possibilities, each of which would fall at different places on the multi-dimensional optimization problem that we've got in front of us.
But I argue that if you want folks to offer student loans, and don't want lenders to discriminate against certain majors, and don't want interest rates >10%, and want principles on the order of >$100k, you probably need to prevent discharging the loan in bankruptcy. You can't get all those other things and dischargeable loans at the same time.