Thanks GOP. Parent's Of Deceased Children Inherit Their Student Loan Debt.

[badtoworse]

38. We're not going to agree on this

Lenders will look at a base rate (one that reflects zero or negligible risk) and assign a premium to that. 10 Year Treasuries are frequently used for that. On top of that the bank adds a premium that reflects credit and other risks. The bottom line in assigning the credit risk premium is whether the loan gets repaid, when it gets repaid and what the bank has to go through to get repaid. The banks know that a significant number of loans will wind up in default and of those, many will go unpaid for years because the borrower has no wages to garnish or simply vanishes. If you don't make the loan payments when and as due, you're in default and given the large numbers of people in that position, saying there is no default risk is ludicrous. There really is credit risk associated with student loans and just saying there isn't doesn't make it so.

I did propose a solution. That solution is looking at the cost of a college education and the employment prospects associated with the degree you'll get. If no one is hiring in the field you want to select, does it make sense to borrow $100,000 plus to get a degree? Parents and student need to evaluate that before they borrow the $100K. Spending a fortune on a degree for which there is no demand in the job market is stupid. In other words, the solution is to do some research and try to make a reasoned, intelligent decisions about the college you select, the degree you pursue and how much debt you take on. If more parent and students did this, the demand for high priced college degrees would diminish and those high priced schools would have to lower tuition to remain competitive.

Laugh once in a while. I thought Caddyshack was a scream. I guess you didn't.