Tuesday, March 30, 2010

Student loans

The public purpose of banking is to provide credit analysis -- namely, to separate good loans (loans that will be paid back) from bad loans (loans that will not be paid back). Therefore, having private banks issue loans that the Government banks makes no sense. Having the Government make student loans directly is a good move in that sense, although there are other parts of the program that are problematic.

1 Comments:

Blogger Ohm (Ώ) said...

Why should Education be excruciatingly expensive in the first place? A young graduate should not be starting his/her career with such a load of debt....Something has fundamentally gone wrong, Education has not received the priority it deserves. Affordable Education merely upto High School is not enough. Education is part of the very foundation of a society.

12:31 AM  

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