I am trying to say that this ‘crisis’ now being exploited was by design.
The universities and government are irresponsibly promoting loans on people with no income. Try getting a no money down $100,000 loan on a luxury car with no income and no collateral. Or a $500,000 mortgage. I am not saying we should pay. I am saying that loans should go back to banks — who should not be bailed out — where there is a real bankruptcy consequence to handing out these loans like candy.
Is anyone even looking at earning potential as part of the loan calculation? Lawyers and doctors may have a reasonable expectation of repaying a 200k loan, but a BA in women's studies? Not that you shouldn't work for your dream, but you may need another route. I have worked 35 years to be in a position to go back to school for an impractical degree. There are many ways to accomplish what you want. Buying people with outrageous loans is immoral.
*** Try getting a no money down $100,000 loan on a luxury car with no income and no collateral ***
Interesting thing here. My daughter, back in the early 2000s bought a brand new Montero Sport.
She had just quit her job to go back to school to get her master’s degree.
She had no income and no car to trade-in.
The loan was for approx 25k and 0% for 72 months with the first 6 months deferred.
They asked her about assets.
They considered her “scholarships” as income and she drove it out of the showroom.
Sad part is, prior to Pres. Clinton, the Feds owned $0 student loans. The Feds only guaranteed the loan.
Sadder part is, a provision of Obamacare was its take-over of the federal student loan program.
And now here we are...