The inflation happening right in front of us: government-backed student loans

Re:The inflation happening right in front of us: government-... by leetcrew on Thursday March 11, 2021 @03:45PM (#26428804)

if I were the feds, I would stop underwriting student loans and make any new loans dischargeable under bankruptcy. probably a good thing neither of us actually gets to decide.

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Re:The inflation happening right in front of us: government-... by mshumi on Thursday March 11, 2021 @03:46PM (#26428815)

underwriting cap and dischargeable in bankruptcy would do it

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Re:The inflation happening right in front of us: government-... by leetcrew on Friday March 12, 2021 @10:20AM (#26436724)

I think the first part is already true? "underwrite" was probably the wrong word to use in my original post. the federal government doesn't really underwrite loans anymore; it directly issues them. the federal loan options all have yearly limits already. if I understand correctly, the remaining private loans are actually not underwritten by the federal government.

but anyways, I don't really see the point in having the federal government issue loans knowing it will end up forgiving a large chunk of them. why not just package that money as grants to the neediest students instead?

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