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Discuss the following two questions in short essays/1~3 paragraphs each

a) Currently, students cannot default on much of their student loan debt. Is this a good thing or a bad thing for them? For the companies? Does your answer change if loan companies have access to an equally-good investment outside of student loans (say, mortgages?)

b) What are the strengths and flaws of a program like "bet on a Boiler" or "back a Boiler" or Bill Clinton's (proposed) "Hope Scholarships," in which students take out a loan and pay it back based on future income? (I.e. you take a loan out for $40,000 and promise to pay 10% of your salary for the next 15 years). What if the program is offered in parallel with a normal loan program? What will happen?

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M92740313
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