Yeah, because there's adverse selection going on: "But people with high credit scores tend to have better, cheaper options than ISAs". All the academically successful student can get student loans/scholarships to traditional 4 year programs, so you're left with people who are genuinely bad mixed with diamonds in the rough. Because of this, you have to charge more to make up for the bad application pool. I'm not sure why this is worth complaining about. It's like complaining that lawyers who work on contingency overcharge compared to ones that work by hourly.
>A good compromise here would be to make private loans fully forgivable
So basically turn them into unsecured loans with sky high interest rates?
If you could file bankruptcy on private student loans, education costs would plummet overnight. Before you claim that education quality will go down, MOST of the money for both private and public colleges/universities ends up somewhere else beyond education. Football stadiums, expensive ad campaigns, fancy buildings, large marketing departments, even political lobbying. Kill off untouchable private loans and place restrictions on public loans then you will see money flow in the right direction.
ISAs are foolish, regardless, because you don't need a degree to write code or manage infrastructure. My income was near $400,000 last year, and I not only didn't go to college, I dropped out of high school due to being homeless. In either W2 or contractual work, I've NEVER had a company question why I did not have a college degree. I understand some folks need the structure, and I think those folks need to be protected. For non engineering jobs or more structured jobs, ISAs are borderline criminal. For everyone else? Unless you like throwing away money that you don't have, stay away.
Yeah, because there's adverse selection going on: "But people with high credit scores tend to have better, cheaper options than ISAs". All the academically successful student can get student loans/scholarships to traditional 4 year programs, so you're left with people who are genuinely bad mixed with diamonds in the rough. Because of this, you have to charge more to make up for the bad application pool. I'm not sure why this is worth complaining about. It's like complaining that lawyers who work on contingency overcharge compared to ones that work by hourly.
>A good compromise here would be to make private loans fully forgivable
So basically turn them into unsecured loans with sky high interest rates?