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A comment on The Student Debt Problem Is Worse Than We Imagined. Parent comment

Re:The Student Debt Problem Is Worse Than We Imagined by imtringued on Saturday August 25, 2018 @08:09PM (#17843358)
That's basic economics of lending. If X% of people default then you have to increase interest rates to cover the people that default. The increased interest rate will dissuade students from taking on degrees with lesser economic prospects.

It's like adding back pressure or load shedding to a distributed system. It is better to drop or delay requests than let the entire system collapse under it's own weight.

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Re:The Student Debt Problem Is Worse Than We Imagined by jldugger on Saturday August 25, 2018 @09:45PM (#17843743)
> If X% of people default then you have to increase interest rates to cover the people that default.

Your borrowers can always default, even without bankruptcy protections. It's a good policy, I assume, but I'm not sure it's strictly speaking, part of the free market dogma.

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Re:The Student Debt Problem Is Worse Than We Imagined by akvadrako on Sunday August 26, 2018 @04:32AM (#17844927)
They can't default because of government interference. I don't think anyone was talking about protections.
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Re:The Student Debt Problem Is Worse Than We Imagined by user5994461 on Saturday August 25, 2018 @09:48PM (#17843752)
It's the opposite. If people can default, then the bank has to avoid defaulters, staying away from financing expensive studies in dead end careers.

Otherwise the bank needs to get more defaulter, because they are more profitable than people who pay back.

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Re:The Student Debt Problem Is Worse Than We Imagined by stephengillie on Saturday August 25, 2018 @10:47PM (#17843925)
Imagine a student having to provide grades and a course plan to their bank, and a loan officer has to sign off on this. Not unlike buying a house.
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Re:The Student Debt Problem Is Worse Than We Imagined by user5994461 on Sunday August 26, 2018 @07:47AM (#17845484)
I can't imagine a student not having to provide his university name and major. Lend 20k per year to study the history of arts, what could go wrong?
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Re:The Student Debt Problem Is Worse Than We Imagined by FLUX-YOU on Saturday August 25, 2018 @09:15PM (#17843631)
Higher tuition (skyrocketing tuition, actually) should have already done that
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Re:The Student Debt Problem Is Worse Than We Imagined by sethammons on Sunday August 26, 2018 @07:58AM (#17845538)
Naw, you just get a bigger loan :)
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