Probably wouldn’t do that, capitalists are heavily invested in Student Loan Asset-Backed Securities (SLABS), basically the same as '08’s famous Mortgage Backed Securities but backed by student loans instead of mortgages. Whatever they would do in regards to student loans would be much more malicious against those who owe them
Yeah, the only thing banks learned from the ‘08 bubble was that they shouldn’t back securities with debts that can be disbursed via bankruptcy. Since student loans can’t be disbursed, they’re the gold standard for securities, and are a big reason why so many rich people are against student loan forgiveness.
They sell the education, the loan is their payment. If the loan was rescinded out of the schools pockets it would instantly go bankrupt for offering services for negative income.
Republicans canceling student loans would almost be cool but they’d probably find a way to destroy universities in the process if they could
I think the universe would implode due to that specific action creating a paradox.
I mean, Republicans were the ones that cancelled free/cheap higher education.
Probably wouldn’t do that, capitalists are heavily invested in Student Loan Asset-Backed Securities (SLABS), basically the same as '08’s famous Mortgage Backed Securities but backed by student loans instead of mortgages. Whatever they would do in regards to student loans would be much more malicious against those who owe them
Yeah, the only thing banks learned from the ‘08 bubble was that they shouldn’t back securities with debts that can be disbursed via bankruptcy. Since student loans can’t be disbursed, they’re the gold standard for securities, and are a big reason why so many rich people are against student loan forgiveness.
They’d make the universities pay the student loans.
That would indeed destroy them in the process.
They sell the education, the loan is their payment. If the loan was rescinded out of the schools pockets it would instantly go bankrupt for offering services for negative income.