[ExI] it makes economic sense

[spike at rainier66.com]

Note that I am not sayin I would do this, just sayin.

 

A 10% chance of getting 1000 bucks is "worth" 100 bucks in a sense, if you
treat mathematical expectation the same way I do.

 

Suppose a student is making it OK, but now she perceives there is about a
10% chance the government will forgive student loans.  She takes out a 50k
student loan she doesn't need for a virtual profit of 5k.  It's a win-draw:
if no student loan forgiveness, pay back, no problem.  If forgiveness, hey,
free 50k.

 

In our times, it makes perfect economic sense for any student to borrow up
to the suggested 50k limit, regardless of need.  In a sense, it becomes
risky to leave borrowing potential on the table: if student loan forgiveness
happens and the student didn't borrow, then she still faces college costs,
no new loans are available, and she is one of those on the hook to pay back
other people's free money.

 

spike

 

 

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