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by kcrx 1470 days ago
There’s extreme moral hazard in allowing institutions to lend money on this scale while protecting them from the risk of a borrower’s default as well.
4 comments

There's extreme moral hazard, on that note, in an education system which requires those seeking better opportunities to pay out of pocket - and thus necessitates such predatory loans in the first place.
That institution that lent the money was the US government.
yes
What's the hazard?

For the worthless schools that took loan money and didn't deliver education (for-profit scam schools), those could be forgiven. For all the expensive degrees that have led to jobs that can't pay the loans back, this all shows how inadequately prepared the students were to do basic arithmetic and cost/benefit analysis. That's on their parents.

Yes, for sure. If we do forgive loans it is pointless if we don’t fix the underlying issue.