Plus, debt jubilees would reduce the power of the megabanks.
Said megabanks wouldn't hand out loans to every dipshit out of high school if they weren't federally guaranteed by the government. They're getting paid regardless, whether it's monthly checks, garnished wages, or the money printer.
That said, the government benefits nicely from this racket, indoctrinating an army of brainwashed midwits and keeping them on the plantation with the carrot of loan forgiveness.
If we're talking about loans for undergrad the government makes most of those directly now. There are still private loans. I don't know if the government guarantees them, but I believe you cannot discharge the debt in bankruptcy so it's still protected by them.
Loans for secondary trade school like law, medicine or business are still often private, however those grads generally make money...
Said megabanks wouldn't hand out loans to every dipshit out of high school if they weren't federally guaranteed by the government. They're getting paid regardless, whether it's monthly checks, garnished wages, or the money printer.
That said, the government benefits nicely from this racket, indoctrinating an army of brainwashed midwits and keeping them on the plantation with the carrot of loan forgiveness.
If we're talking about loans for undergrad the government makes most of those directly now. There are still private loans. I don't know if the government guarantees them, but I believe you cannot discharge the debt in bankruptcy so it's still protected by them.
Loans for secondary trade school like law, medicine or business are still often private, however those grads generally make money...