quote:
If people are allowed to bankrupt their student loan debt, private lenders will go out of business. So, kids who really need loans to major in worthwhile disciplines like engineering and medicine will be unable to afford their education.

Those are the only majors that will get loan money.

The default rate in medicine is so low that private banks give jumbo mortgages to doctors with 100% financed and a signed employment contract (you don’t even have to prove that you already make the money, just that it’s coming in the near future). Those students aren’t going to be the ones who aren’t getting loan money. Communications majors on the other hand…

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Posted by Jay Quest

Once removed from Massachusetts

Member since Nov 2009

10721 posts

Posted on 2/4/22 at 9:55 am to GumboPot

This action will not go down well with the congressional loons who want total forgiveness on student loans.

Where are you this morning Elizabeth Warren?

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Posted by GumboPot

Member since Mar 2009

140573 posts

Posted on 2/4/22 at 10:03 am to YipSkiddlyDooo

quote:
The default rate in medicine is so low that private banks give jumbo mortgages to doctors with 100% financed and a signed employment contract (you don’t even have to prove that you already make the money, just that it’s coming in the near future). Those students aren’t going to be the ones who aren’t getting loan money. Communications majors on the other hand…

There are some lending companies like BHG that started out lending specifically to people in the medical field because these borrowers met their risk profile. They extended their lending to CPAs, financial professionals and engineers because they discovered these professions were as responsible as medical professionals in terms of borrowing and paying back loans.

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Posted by Lima Whiskey

Member since Apr 2013

22594 posts

Posted on 2/4/22 at 10:31 am to GumboPot

Universities would have to slash their bloated bureaucracies too. Including their equity departments.

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Posted by ChineseBandit58

Pearland, TX

Member since Aug 2005

49531 posts

Posted on 2/4/22 at 10:38 am to MMauler

quote:
It's kind of a double edged sword.

Actually - we should limit education loans to Universities themselves - IF they have a product they think is worth loaning money to someone in that field, then let them do it. And suffer the loss when their grads are unable (or unwilling) to pay it back.

Anyone else loaning money to a student should make the risk assessment themselves = not one cent of taxpayer money should guarantee any such idiocy.

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