That is still a reasonable period of time to make them low risk. So we get a market flooded by cash. And now due the ubiquity of degrees, many are worthless but necessary. They are becoming the high school degree.
The risk doesn't really have anything to do with "a market flooded by cash".
The government distributes loans because legislation forces them to--not because they are low risk--and the money comes directly from the department of education not private investments. Private loans are only about 7% of the loan disbursements.
The government distributes loans because legislation forces them to--not because they are low risk--and the money comes directly from the department of education not private investments. Private loans are only about 7% of the loan disbursements.