half of outstanding student loan isnt being repaid. 7 million in default

[limpyhobbler]

74. Banks got bailed out / We got sold out

I'm not concerned with protecting banks. Only concerned with protecting humans.

The whole frame of looking at it is different.

Try making a $200/month student loan payment when you have a $900/month disposable income and then get back to me.

No I'm not OK with any of it since I think the whole system is screwed up. But as to your question I do think education loan interest rates should also be regulated, and low. And if no bank finds it profitable to make education loans with that kind of regulation then they don't have to do it. And good riddance to them, we don't need them. The federal programs are much better. My guess is they will still find it profitable to lend because this was the law in America until 2005 and the banks were happily making enourmous profits straight through.

Under IBR schemes you say banks would "take a loss". Cry me a river. Banks got bailed out during the crash of 2007-2008, and they have and will continue to benefit from massive corporate welfare every which way. Which we pay for. The people got stuck holding the bag, and ground up by the system. People with underwater mortgages, facing foreclosure are the well known example. There are many parallels between the sub-prime mortgage lending bubble that let up to the crash, and the private education lending bubble that was going on the same time. Some college diplomas are not worth the paper they're printed on. Even technology degrees do not necessarily live up to the earning value people expected. The economy crashed, the jobs got outsourced, and guest workers were imported from overseas. If someone took on a large debt expecting a $60,000/year income, but instead gets a $18,000 income, that's going to be a hard loan to pay back.

The primary concern ought to be how do we do what's fair and right by people. People who work hard and play by the rules should not get ground up in the system - in the education system, financial system, housing system, health care system.

How do we protect people from getting raped by banks - that ought to be the top concern. Not how do we protect banks to make sure they can stay profitable.