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A comment on Student Loans a Lot Like the Subprime Mortgage Debacle, Watchdog Says. Parent comment

Re:Student Loans a Lot Like the Subprime Mortgage Debacle, W... by vxxzy on Wednesday December 11, 2019 @08:45AM (#21762226)
This is simply untrue. They do care. For institutions with high default rates (greater than 30%), they risk missing out on the federal student loans (imo gravy train). [0]. It appears that this time around, a good number of technical/trade related institutions lost out. [0]

[0]: https://www.ed.gov/news/press-releases/national-federal-stud...

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Re:Student Loans a Lot Like the Subprime Mortgage Debacle, W... by linuxftw on Wednesday December 11, 2019 @09:56AM (#21762886)
No. They've completely gamed the system, so technically most people aren't 'defaulting' they're just paying almost nothing, forever [1].

1: https://studentaid.ed.gov/sa/repay-loans/understand/plans/in...

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Re:Student Loans a Lot Like the Subprime Mortgage Debacle, W... by nostromo on Wednesday December 11, 2019 @10:42AM (#21763441)
30%!

If a bank had a 30% default rate on mortgages they’d immediately cease to be a bank.

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