That money was already spent in the economy through the tuition and living costs of the students.
The bank or government, whoever holds the note, depends on those loans begin repaid. They need that repayment for their own business costs and to have money to invest in other businesses.
It is time for students and parents to make carefully considered decisions about higher education and the return they can expect on their investment. Students cannot keep going into massive debt for degrees that will not lead to lucrative careers or jobs.
The bank or government has made their investment in the form of the loan, they should be payed back. The students and parents took the risk, they have to deal with the failure if the student’s degree does not provide enough for them to pay it back.
Again, if the full impact of these loans is understood before they are taken out, it will hopefully cause the parents and students to rethink the value of taking the loan to make an investment with little or no return.
If we tell kids like this young woman that she and her parents can take out enormous loans for her to attend a small, expensive college to get a degree that will not afford her the ability to pay it back, that we as taxpayers will absorb the loss of her default, because “everyone should go to the college of their choice, without regard to cost”, then kids and parents will continue to take out loans they cannot repay without hesitation or guilt or a sense of responsibility.
Buyer beware.
Look at what you are agreeing to before you sign on the dotted line. Know what ALL the costs and consequences are before you shackle yourself to debt.
There’s a sucker born every minute and wolves looking to devour that sucker the minute he’s born. Don’t be a sucker.
“That money was already spent in the economy through the tuition and living costs of the students.”
Some of these loans will have a lifespan of upwards of 30 years. A tad longer than the usual college stay. Again the impact on the economy is a negative. Those in their 20’s - 40’s tend to be the biggest spenders FYI.
“The bank or government, whoever holds the note, depends on those loans begin repaid. They need that repayment for their own business costs and to have money to invest in other businesses.”
Not really. Dubya hooked up the loan industry big time by instituting non-repudiation for educational loans. The banks who hold those notes can give them out without a care in the world precisely because the big government GOP idiots made it impossible for them to be disposed of in bankruptcy. This is harmful to the economy because if a student is directing most if not all of their disposable income to cover interest payments on a loan, consumables take a dive.