Political discussion and ranting, premised upon the fact that even a stopped clock is right twice a day.
Friday, October 08, 2010
How About Insuring Student Loans Instead of Guaranteeing Them
The net effect would be similar - if a student defaulted the lender would be able to make a claim for indemnification from the insurer. But the mechanism would be different - rather than having the taxpayer write a blank check, educational institutions would contribute part or all of the cost of insuring student loans based upon their default rate. No educational institution would have to participate, but the price of not participating would be ineligibility for participating in the insured student loan or federal tuition grants programs.