|
Ka-pi96 said: What even happens in the US if people "are either in default, delinquency or have postponed repaying their student loans"? Because in the UK it's not even possible to be any of those things, well unless you earn a load of money self employed and "neglect" to tell the government about it. |
These taxpayer-financed systems can work nicely but you need strict rationing to avoid cost explosion. A good example would be to limit taxpayer-funding to the top 1% or maybe 10% of the students with the best grades.
If people don't pay their loans, the principal amount will increase and increase over time. Some private lenders will resell the loans for a lower price to a speculator. Government loans will ultimately run a loss and the taxpayer has to pay the rest.
