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A comment on NYU Neatly Embodies Everything Wrong With Higher Education in America. Parent comment

Re:NYU Neatly Embodies Everything Wrong With Higher Educatio... by brown9-2 on Wednesday June 19, 2013 @11:41AM (#5906161)
Those institutions that can convince lenders that graduates will be in a position to pay back the loans quickly will be able to offer lower rates to students, and thus attract more and better students.

This assumes that a lender's primary interest is in having a loan repaid quickly. I don't think it's true - they are in it to make a profit, and exploiting the young adult with penalties and hidden fees or tricks helps expand that profit.

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Re:NYU Neatly Embodies Everything Wrong With Higher Educatio... by mseebach on Wednesday June 19, 2013 @11:49AM (#5906210)
No, true, they won't care about the speed. But they will care about the default rate - and the ability to pay the debt down faster correlates strongly with a lower risk of default.
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Re:NYU Neatly Embodies Everything Wrong With Higher Educatio... by brown9-2 on Wednesday June 19, 2013 @12:30PM (#5906518)
But all other things being equal, would they choose a speedy repayment or a slower, more expensive schedule?

I think one good reason for government participation in the student loan market is that it helps reduce exploitation of the borrowers, who are mostly just-turned-18 adults so eager to attend a college they'll sign anything.

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Re:NYU Neatly Embodies Everything Wrong With Higher Educatio... by mseebach on Wednesday June 19, 2013 @01:03PM (#5906746)
All other things being equal, just like with mortgages and credit cards and car loans and other credit products, there will be different options with different terms available from different providers. Including these guys: http://www.economist.com/news/finance-and-economics/21578670...
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