Josh Mitchell
speaker
438 appearances
7 recordings
1 series
first heard Jul 2017
last heard Feb 2022
Josh Mitchell’s voice in public audio — every appearance, attributed to the second.
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Appearances
So that was one way that private banks used to be involved in this program.
And yes, before the financial crash, they used to make more loans regularly.
without the guarantees, just more private loans on their own to students.
And so their share of student lending, when you look at the entire market for student lending, has dwindled.
It's now 10% or less.
And they're now trying to get a piece of that back.
Well, private lenders currently already make some student loans.
But the issue is that they're making loans to people with the strongest credit scores or people who co-sign.
So right now, if you are an undergraduate, for example, and you want to get a private loan, you basically have to have a strong credit score or you have to have, say, a parent with a strong credit score co-sign your loans.
and or you have to go to a pretty decent school.
This is probably the biggest issue right now, but the biggest difference between the private student loan market and the federal student loan market, the federal loan program doesn't really underwrite its loans.
So basically, the federal government has this policy of no questions asked.
It, in many cases, just gives students a blank check regardless of what their credit history is, regardless of what they study, what school they're going to,
And so the idea there is to grant as much access as can be to as many students in the United States, to anyone who wants to go to college.
The private student loan market looks at the credit history of students and their parents, the quality of the school, what they plan to study, and they basically want to grasp what is the chances that that student is going to repay the loans.
And so the upshot is that if you want to get a private loan,
You have to have a pretty good credit and you have to go to be going to a pretty good school.
And I don't think that would change with this bill.
I think what you're still looking at are this market being highly concentrated among people with strong credit, which means if you don't have good credit, if you go to a middle tier school or lower than middle tier school and, you know, you come from, let's say, a poor background, your parents aren't able to co-sign
you might face a tough limit on how much.
Showing 341–360 of 438 · page 18 of 22
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