Originally Posted by Bostonian
Originally Posted by aquinas
I predict we'll see student debt securitized by major and class, with differential rates of return by area of study, region.
I support this, but such lending is crowded out by the current system of government-guaranteed loans, which charges all students the same rates and effectively gives the largest subsidies (the difference between a market interest rate and the government interest rate) to the worst students who study the most impractical subjects.

You do know that the cap on government-backed student loans is just 11K annually, for a combination of student (Stafford) and parent (PLUS) loans, right? And that you're into "unsecured debt" territory already as soon as you are borrowing to cover what an institution THINKS you can write a check for rather than considers "need" for your household...



Remind me what tuition is up to at Stanford, again? How about out of state tuition at UW?



The students who wind up (or their parents do) with 50, 60, or 100K in debt didn't get there with government subsidy.


Schrödinger's cat walks into a bar. And doesn't.