Originally Posted By: mechanicx
Originally Posted By: Tempest
Quote:
Why are these loans GOVERNMENT guaranteed. Why not have the schools themselves on the hook?
Not going to happen since the student loan industry has been fully nationalized.
Should a mechanic be put on the hook for your credit card payment?
Well he can be on the hook if services aren't effect. And credit card debt is dischargable and based on current ability to pay. Student loans are not. Rather than credit card payment, warranty work would be a better analogy anyway. Borrowing money to pay for college is more like a gamble, as is a business loan.
But most business lenders actually want some assurance they will be repaid in a timely manner, and seek collateral for the loan. And every business loan I have ever received required my personal guaranty on the loan, regardless of the entity receiving the loan, so you can't just bankrupt the failed venture and walk away from it.
I can't help but think that the abundance and cost of these schools is directly related to the easy money that they get the benefit of, without any reciprocal risk. And if states are in fact giving less subsidies to the schools, where is the corresponding tax reduction to the real property owners? Not only have there been no tax reductions around here, but they are soaking the stupid and poor with a lottery to fund educations insatiable appetite for more and more easy money.
Originally Posted By: Tempest
Quote:
Why are these loans GOVERNMENT guaranteed. Why not have the schools themselves on the hook?
Not going to happen since the student loan industry has been fully nationalized.
Should a mechanic be put on the hook for your credit card payment?
Well he can be on the hook if services aren't effect. And credit card debt is dischargable and based on current ability to pay. Student loans are not. Rather than credit card payment, warranty work would be a better analogy anyway. Borrowing money to pay for college is more like a gamble, as is a business loan.
But most business lenders actually want some assurance they will be repaid in a timely manner, and seek collateral for the loan. And every business loan I have ever received required my personal guaranty on the loan, regardless of the entity receiving the loan, so you can't just bankrupt the failed venture and walk away from it.
I can't help but think that the abundance and cost of these schools is directly related to the easy money that they get the benefit of, without any reciprocal risk. And if states are in fact giving less subsidies to the schools, where is the corresponding tax reduction to the real property owners? Not only have there been no tax reductions around here, but they are soaking the stupid and poor with a lottery to fund educations insatiable appetite for more and more easy money.