Quote:
Originally Posted by retiredguy123
I don't think it is appropriate to compare car loans to student loans. Car loans are private loans made by financial institutions and they are for profit, collateralized loans. Student loans do not have any any collateral, and, when they default, the taxpayer loses, not a financial institution. The total car loan debt is about 1.25 trillion dollars as compared to the student loan debt of 1.6 trillion dollars. But, I don't think the companies making car loans are losing money. The taxpayers making student loans are losing plenty of money because, from a financial standpoint, most of them are bad loans. This is an apples to oranges comparison.
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When the graduate ends up in Section 8 housing, collecting welfare and SNAP benefits, and has their only form of transportation repossessed because they paid back their student loan and have nothing left . . .
it's the taxpayer who will be paying for that graduate's housing, welfare check, food stamps.
Do you really think a few years worth of all those things are less expensive to the taxpayer than the student loan? If you do, then there is something seriously wrong with the cost of higher education, because it shouldn't cost more than the cost of housing, food, utilities, clothing, and transportation for a few years.
If you don't think those things are less expensive, then you probably would prefer to risk being the taxpayer who pays for the defaulted loan, than for the graduate's expenses as a result of not finding a job in the career their education was supposed to prepare them for.