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re: Do you consider student loans government hand-outs?
Posted on 4/27/15 at 11:26 am to Vols&Shaft83
Posted on 4/27/15 at 11:26 am to Vols&Shaft83
quote:
I'm in agreement with you, but I just don't see it as a "handout". At least not for the students. As I mentioned earlier though, I do believe it's a handout for the banks.
They are paying less than market value for a product simply because they can't afford it. At least when it comes to interest rates. That's a handout, IMO.
2
Posted on 4/27/15 at 11:32 am to TeLeFaWx
quote:
They are paying less than market value for a product simply because they can't afford it. At least when it comes to interest rates. That's a handout, IMO.
Well then we just disagree about the definition of the word. A loan, regardless of interest rates, is not a handout.
Posted on 4/27/15 at 11:38 am to TeLeFaWx
I see your point, but the borrower is still agreeing to pay back the loan.
And while the interest rate may be lower, the consequences of defaulting on a Federally insured loan are way more severe than defaulting on a traditional loan.
And while the interest rate may be lower, the consequences of defaulting on a Federally insured loan are way more severe than defaulting on a traditional loan.
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