With child support we still garnish wages etc for arrears, that hasn’t changed. The punitive side is all that has changed. As to the camera at lights etc, in NJ the police have license plate scanners. They know everything about you before they get out of the car.
Maybe it's how it started but monetizing and keeping power by disenfranchising others is what kept it going
You can do forebearance or pauses which capitalizes the interest during periods of non payment. Also if you want to pay below the amortized amount the extra gets capitalized.
Almost all student loans are guaranteed by the U.S. government in one way or another. That's why banks have traditionally been happy to make these loans to 18 year-olds with no income and no assets. The bank bears no risk of default, and as a riskless loan it is very liquid. Great deal for banks! And because of this the 18-year-old gets a favorable rate (or should). Then the Bank will buy public service ads pointing out how they like to help students as part of their civic duty -- the ads don't, however, point out that the loans carry no risk for the Bank. So it's that taxpayers who should get pats on their backs for being good citizens. Some will say paying for well qualified students to get higher education is a good investment and in the public interest. I tend to think it is. But let's be honest, the banks don't get hurt when these loans go bad. Our Constitution might have been more accurate had it read: "...and secure the Blessings of Profits to our Banks and our Corporations ..."
The solution is for the Universities to hold the paper When they raise cost it creates more liability for themselves They also would also work harder to get students educated in areas they can earn a living They would help students graduate...currently 54% dont
????? I really never know if you are trolling or if these are serious ideas You say to shift the risk to the Government, as Piezoe writes Government already carries the risk of student loans.... If I am a school its a nice deal....A school has no accountability to protect risks or maintain costs.
To add to your statement: At any given time ~15% of student loans are in default and something like 5% are never paid back in their entirety- meaning interest AND principal. Which isn’t as bad as what is portrayed but is still pretty risky for the holder of the debt. Also, the government makes a small profit of about $2-3 billion a year on loans. Technically, it’s not a “profit” but it is excess collection to disbursement. Just some figures to wrap your minds around. **** I will also add like anything else the key to efficiency is usually cutting out the middleman, in this case banks. There’s more than enough capital available in the program to in-house the debt servicing and reduce costs to the borrowers.
School just charges a price, no one puts a gun to your head to pay it. Why should a school take on the risk of the customer who is borrowing money. When you buy a car from Acura and get financing from someone else, does Acura assume the risk of you defaulting on the loan?? You might want to think again about your thoughts haha