University/College Questions Part III (incl. protest discussion)
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04-30-2012, 06:27 PM
Join Date: Mar 2009
Originally Posted by
it's not just a concession... they take ZERO risks and get all the "profits"...
they get their money back with interest, even if the student doesnt reimburse a dime on the loan.
Why should they have to take on any risk, if they were not compelled to do so by any benefit? There is no benefit whatsoever to grant loans to non-collateralized debtors if they cannot get a guarantee, whether through public or private means. The money simply wouldn't be available, at all, if it weren't for provincial subsidies.
These are measure put in place so that banks could give money to a group which the government considers a natural good, without engendering any undue risk. You cant ask someone to put up capital for something against their interest. Banks are private entities. Opposition to this is simply a demonstration of ones opinions with regards banks rather than the operation of a loan guarantee.
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