Cogman
Lifer
- Sep 19, 2000
- 10,286
- 145
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Gov't student loans can be used to cover the cost of textbooks. Student loans don't go away in bankruptcy.
So, why would the gov't stop a process that is making money for the gov't?
Student loans have artificially low rates.
Rates are set to ensure the lender doesn't loose money
In the long run, the government is going to loose money on student loans through non-payback (Delayed payback also results in loss of money).
Not only that, but the government BORROWS money at a higher rate than that of the student loans.
The government loses money from students loans (They may gain it back by the students making more money and paying higher taxes).