Dirty secret: Black american students have a DISMAL rate of paying back their loans. The debt sits on the balance sheets of banks - as dead weight. If the banks could get rid of the debt, the balance sheets would look better.
They are NOT making any money on these loans, as they don't get paid back. So the banks win if the debt is erased. Especially if the tax payers eat a portion of it.
I know so many people who apply for the loans at the community college level because they will get way more than what the school cost and blow the rest of it.
Yup. My sister was an exec at a major online university. There is a book buying stipend with the loan. Kids sign up for the school just to get the loan and get the stipend. School gets a bonus for signing up the student. Kid has no intention of ever attending one hour of class.
They get massive loans and enroll in community college, then drop classes and get refunds on tuition. Then they spend the money on Nike’s and Gucci, and iPhones. I’ve seen it many times. They have no intention of paying or ever even going to college. It’s all fraud.
Dirty secret: Black american students have a DISMAL rate of paying back their loans. The debt sits on the balance sheets of banks - as dead weight. If the banks could get rid of the debt, the balance sheets would look better.
They are NOT making any money on these loans, as they don't get paid back. So the banks win if the debt is erased. Especially if the tax payers eat a portion of it.
I know so many people who apply for the loans at the community college level because they will get way more than what the school cost and blow the rest of it.
Yup. My sister was an exec at a major online university. There is a book buying stipend with the loan. Kids sign up for the school just to get the loan and get the stipend. School gets a bonus for signing up the student. Kid has no intention of ever attending one hour of class.
They call that being "student rich."
They get massive loans and enroll in community college, then drop classes and get refunds on tuition. Then they spend the money on Nike’s and Gucci, and iPhones. I’ve seen it many times. They have no intention of paying or ever even going to college. It’s all fraud.
Just like subprime mortgages, the government knew from the start what they were doing
Those same ones get huge amounts of Pell Grants.
Then they drive around campus with their new rims or you'll see new gucci clothing the beginning of the semester.
Interesting, didn't consider this