Starting next month, borrowers enrolled in SAVE who took out less than $12,000 in loans and have been in repayment for 10 years will get their remaining student debt cancelled immediately.

  • admiralteal@kbin.social
    link
    fedilink
    arrow-up
    2
    ·
    edit-2
    10 months ago

    For sure, there’s always risk involved. But I get a smell from it based on the fact that the risk is essentially entirely on the student, which means there’s an incentive to give out the loans without judging the “business plan”, so to speak.

    Doesn’t happen with business loans. Give out a bad loan to a business and the bank just loses the money when inevitable bankruptcy arrives.