Rising college loan default rates

ucbalumnus
Sun, 26 Aug 2018 14:16:40 +0000

SatchelSF:

Just as in the housing fiasco just a few short years ago (how fast we forget?), you never know when the taxpayer will be forced to bail you out.

There will be no need of a bailout like with bad mortgages which spread throughout the banking system. Government student loan losses become part of government spending, though such costs are small compared to the amount of budget deficit increase through recent politicians’ actions. Private student loans (a small fraction of the total) require cosigners with sufficient income and credit standards.