Students aren’t actually borrowing from lenders. The Federal Reserve types in keystokes and the bursar’s account goes up by that amount. Lenders get the privilege to service all that newly minted debt. If the borrower dies before the debt is paid off, the lender gets that forgiven because they write the rules. This is fantasy land banking dreamed up by lobbyists. People need to stop pretending student debt industry is in anyway legitimate.
Students aren’t actually borrowing from lenders. The Federal Reserve types in keystokes and the bursar’s account goes up by that amount. Lenders get the privilege to service all that newly minted debt. If the borrower dies before the debt is paid off, the lender gets that forgiven because they write the rules. This is fantasy land banking dreamed up by lobbyists. People need to stop pretending student debt industry is in anyway legitimate.