Originally Posted by double00
nobody in their right mind makes loans on the value of the loantakers assets, collateral, etc. they make loans based on the likelihood of the recipient paying it back. it's hard enough to ascertain the value of a degree now, much less in the future. so it basically comes down to a question of character: does this person have a reasonable history of managing debt? if yes, then they will likely continue to do so. but most 17-, 18-year olds don't have that kind of history to examine.
EDIT: when i refer to loan taker's assets, i'm specifically referring to the value of the asset that the loan will cover: housing, degrees, cars, etc etc. if you've got a million dollars you can and will get a loan for ten grand.
This is a poor argument because you're missing one fundamental fact: student loans can (virtually) never be discharged. Who cares about assets, character, degree or credit history when you have the rest of the borrower's life to collect?
Find people like Mario ("I wasn't even meant to go to college. It was never my intention. And then all this shit happened where I took a year off, and I realized, Fuck, I don't think I can work overnights at a Target stocking shelves for the rest of my life.") and you can milk them for decades, since most go back to stocking shelves at Target, rather than run away to Germany. Especially when they use the loans to go to fucking film school.