Re:Student Loans a Lot Like the Subprime Mortgage Debacle, W...
by mhb on Wednesday December 11, 2019 @09:32AM
(#21762658)
If universities had to worry about students defaulting
Not just that. You can imagine additional benefits if the incentives of the parties involved are realigned. It would be in the interest of lenders to evaluate the readiness of students to attend college. This would potentially lead to better, less gamable testing.
It might make less sense, from a lender's perspective, for a student to go straight from high school to college. Instead perhaps they would want to see evidence from a couple of years of life outside of school that their loan would be repaid. The potential student would need to make a case to the lender and herself.
Not just that. You can imagine additional benefits if the incentives of the parties involved are realigned. It would be in the interest of lenders to evaluate the readiness of students to attend college. This would potentially lead to better, less gamable testing.
It might make less sense, from a lender's perspective, for a student to go straight from high school to college. Instead perhaps they would want to see evidence from a couple of years of life outside of school that their loan would be repaid. The potential student would need to make a case to the lender and herself.