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
They call it income-based repayment.
So you have some people who are defaulting.
You have other people who are current on their loans, but they're just not paying them down as much as Congress thought they would.
Basically, there's no underwriting of these loans, and what I mean by underwriting is that when the education department gives a student a loan, it doesn't look at basic characteristics to determine how likely that person is going to repay their loans.
This is something that a bank actually does.
A bank, when you go to apply for a home loan, for example, they're going to look at your income.
They're going to look at how much the house is that you're buying and how much it is compared to the debt you're taking on.
For example, a mortgage lender is not going to give you a $400,000 loan for a house that's only valued at $200,000.
Here, basically the education department is not doing that.
It's basically saying, oh, if you want to borrow $50,000 for a degree that's not going to allow you to pay off that degree…
No, you know, sure, here, here's the check.
And so what's happened is over the years, you have had a lot of people that have taken on debt that they're able to repay.
But you've had an increasing number of people who, because there's no underwriting on the front end, they're taking out student loans that are too high compared to what they earn once they leave school.
And that's becoming a very big problem.
That's one of the big points here is that we're actually going through a similar type of reckoning that the U.S.
and the private mortgage lenders went through 12 years ago where there had been a lot of, you know, you can call it reckless lending.
There was a lot of lending where lenders basically had their blindfolds on.
They would give people a loan.
They wouldn't consider whether they'd be able to repay because they assumed that the value of a house would always go up.
Well, kind of the same thing has happened over the past 10 or 15 years
Showing 101–120 of 438 · page 6 of 22
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