Re:Some U.S. Colleges Cut Tuition
by ChrisLomont on Monday December 21, 2020 @03:34PM
(#25499247)
>There is no collateral for credit card loans either.
Which is why credit card companies don't give you 100K in credit cards, but you can get that in student loans. Heck, they generally won't give you more than a few K in credit cards until you've demonstrated some credit trustworthiness.
Re:Some U.S. Colleges Cut Tuition
by selimthegrim on Monday December 21, 2020 @03:13PM
(#25499017)
Not true, I went to a top accredited school and had to take out private loans (at 9.5%) when I exhausted their aid and federal resources and my parents were tapped out
When was this, though? There have been major changes in the college loan situation over the last 20 years or so....
Re:Some U.S. Colleges Cut Tuition
by selimthegrim on Tuesday December 22, 2020 @12:23AM
(#25503169)
2008-09. Just for about 10k though.
> There is no collateral for credit card loans either.
And? So? Low balance credit cards don't have collateral. High balance ones require impressive proof of income,credit history, etc. This isn't an argument.
Your second point needs a HUGE citation. Please provide, thanks.
There is no collateral for credit card loans either.
> Banks have to make up for that risk somewhere.
Private student loans have pretty much shriveled to a drop in the ocean of higher-ed financing since they were excluded from the federally-subsidized loan programs (for quite a long time the only “federally-subsidized” loans are direct federal loans), so banks don’t need to do anything; privately-originated loans are only a factor for unaccredited schools whose programs are not eligible for federal loans.
The only lender relevant for federal loans will do exactly whatever federal policymakers decide is desirable, so need to motivate lenders is not a constraint on policy choices.