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A comment on Subprime loans for college hiding in plain sight. Parent comment

Re:Subprime loans for college hiding in plain sight by wodenokoto on Monday September 19, 2022 @08:38AM (#32897523)
If you think the house will appreciate and you have the money, I think it’s fine to extent the loan as long as you’re willing to take the risk on the appreciation you don’t really even need to risk assess the 27 year old.
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Re:Subprime loans for college hiding in plain sight by SOLAR_FIELDS on Monday September 19, 2022 @08:43AM (#32897576)
Right - this is fundamentally different than the education argument - the house is a tangible asset that can be repossessed. The education is not.
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Re:Subprime loans for college hiding in plain sight by Retric on Monday September 19, 2022 @08:44AM (#32897590)
Transaction costs offset significant appreciation in the short term. This makes such loans surprisingly risky even if homes are appreciating.
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Re:Subprime loans for college hiding in plain sight by Spivak on Monday September 19, 2022 @08:47AM (#32897614)
So if, for you, the thing that makes a loan safe is the lender feeling reasonably confident in the value of the collateral then what makes 10% of a persons discretionary income for 20 years feel more risky?
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Re:Subprime loans for college hiding in plain sight by wodenokoto on Monday September 19, 2022 @09:19AM (#32897909)
The ability to collect 10% and the size of their income.

But I’m from Scandinavia so I do think 10% of income is a great way to pay for college. Have the government collect it and cut out the bank!

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