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Well you could make it a ratio of: [your income]/[maxincome] * [MaxFinancialAid] But then you would end up with situations where people can borrow $500 which
by Someguywhatever 8y ago
Well you could make it a ratio of:
[your income]/[maxincome] * [MaxFinancialAid]
But then you would end up with situations where people can borrow $500 which is useless. So they just allow it up to 150k and then make it a hard cut off as they feel that anybody who makes that much should absolutely be able to pay, and the administration costs of loaning < 10k could be a waste of time lets say.
- colordrops 8y agoBut $500 is still a lot to a family who's margins are very tight. Or $2000 for a family that is closer to the threshold.
- Someguywhatever 8y agoNobody would administer a loan for $500 though, the juice isn't worth the squeeze for financial institutions