Generation Debt, and other writing by Anya Kamenetz
One comment on your chat about school-as-lender. Yes, schools do receive some profit from the sale of their loans which are done as school-as-lender, but those profits are required by federal regulation to be used for undergraduate scholarships. With the shrinking of state aid budgets and anemic federal resources, why shouldn't schools look to school-as-lender as another avenue to provide assistance to their students?
that's fine, but why should banks be allowed to provide such incentives (which they pay for out of profits that are ultimately guaranteed by the federal government) when the direct loan program is not allowed to? I'm not saying schools are doing anything wrong by negotiating with the system that exists. I'm saying the system needs to change.
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