Capitalism is great. You sound like a smart cookie in the way you went about learning and going into business.
I don’t think “we” are backing those loans your wife has. She didn’t get them through the federal student loan program. This I know for sure. She bit on some advertising from private banks. They are allowed to offer “student loans” that have nothing to do with the federal student loan system.b
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No offense, but it doesn’t really matter what you think. The reality is the Federal government is collecting the bill, not the bank that “loaned” it to her. The only reason she isn’t making payments on it right now is because she’s currently going to school.
I don’t think taxpayers are on the hook for the big loans your wife took. Those were private loans. Federal school loans for a low cost CC degree would be minimal. She got taken.
They aren’t taking advantage of anyone.
The money is the bank’s to start with.
The public demands gov’t backed student loans so the lending criteria and interest rates remain ridiculously low.
The bank then loans that money, it’s no longer an asset to them, they don’t have it anymore.
Then they student makes no payments for up to 10 years, longer if say they are going through medical school, internship, and residency.
So the bank is getting no return period for at least 4-6 years. When the student then does start paying it back it’s in very small payments and again very little interest.
If the student defaults after 4 or more years, the bank is out all of their operating costs, principle, and interest until they go through the process to get the fed’s who guaranteed the loans (costing them even more) to finally get paid back the principle and interest they’ve now been out for up to 16 years.
She’s not making payments to the gov’t, she’s making payments to the bank.
I bet we won’t see Misty again.
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Gosh. You’d think they wouldn’t loan money out at all the way you’re making it sound. And again, they’re getting ALL of it back from the Federal government. Where’s the risk?
High probability you’re right there. It had the smell of a h it and run from the start.
The federal student loan program isn’t that generous. She’s stuck in the predatory private student loan racket. 
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The wouldn’t if they couldn’t make some money off of it, just like the mortgage on your home and the note on your car.
Sure. Because the Federal Student Loans department collects on private loans. Maybe you don’t know what you’re talking about.
Your wife’s loans aren’t backed by the federal government.
Sure. Whatever you say.
Your wife’s loans aren’t federal subsidized loans. They are just bank loans. They are terrible.b
Of course. Whatever you say.
Federal loans don’t loan out as much as your wife took. She shouldn’t have taken those loans dangled in front of her by predatory banks.
I know this.
Really? You know exactly what loans she took and what they were for. That’s amazing. Kreskin is that you?
You went $100k in debt to get a degree in a field you make $35k a year in and you want me to …? Pay for your mistake?
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There’s a limit to how much you can borrow each semester through the Federal Student Loan Program.
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