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Political Discussion
Reply to "WTF? Govt rewarding bad behavior Part II"
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[quote=LeesburgResident]Oh no, 16:37, are you implying banks might be at risk for making bad student loans? I agree that while correlation does not cause causation, the insurance and underwriting industries do operate on some degree of that assumption. Or, auto insurance for a 16 year old who drives a Corvette is always going to be pretty pricey. If banks are going to be on the hook for student loan defaults (Good Thing), they have the right to charge higher interest rates on higher-risk loans (more Free Market). Likewise, those in charge of counseling students regarding college finances have a fiduciary duty (or should) regarding expected salaries for all graduates from that college, default risks for an intended major, etc. [/quote]
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