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The point would be that the government assumes the risk of all students as a collective. With government rates much fewer people would default.
by cipher_system 5y ago
The point would be that the government assumes the risk of all students as a collective. With government rates much fewer people would default.
- lordnacho 5y agoFewer of the people who are currently borrowing would default. That's not the same as fewer people would default. Lower rates will cause more people to take a loan, and you have to think they are the more marginal students. Then you're left with whether it's ok for society to pay for more people trying college and not finishing. A political question of course.