Re:Colleges at the breaking point, forcing ‘hard choices’ ab...
by rrrrrrrrrrrryan on Thursday April 30, 2020 @08:18PM
(#23037829)
I've always thought it would make sense to have all the involved parties take a hit if a student loan can't be repaid.
For example, the loan could be split four ways. To qualify for discharging the remaining balance in bankruptcy, we could require that you've already paid at least 25%, the bank can eat 25%, the university can eat 25%, and Uncle Sam can cover the rest.
If we don't force all the parties to share some of the consequences, we're basically pushing universities to charge as much as possible, banks to lend as much as possible, and 18 year old kids to enter into lifetime contracts of potentially crippling debt.
For example, the loan could be split four ways. To qualify for discharging the remaining balance in bankruptcy, we could require that you've already paid at least 25%, the bank can eat 25%, the university can eat 25%, and Uncle Sam can cover the rest.
If we don't force all the parties to share some of the consequences, we're basically pushing universities to charge as much as possible, banks to lend as much as possible, and 18 year old kids to enter into lifetime contracts of potentially crippling debt.