Or are the banks just a way for schools to keep sticking it to their students after they graduate?
The Consumer Finance Protection Board is looking at the cozy relationship between the banks and the schools now that its early leader, Elizabeth Warren, is safely back in her student-debt-padded womb at Harvard Law. Or so reports Chris Morran at Consumerist.
I’m a bit skeptical that this is something really horrible, but let’s give it a whirl. The schools have a captive audience with a taste for gorging on debt. The banks need people with eyes bigger than stomachs because banks need to loan money. Why not bring the two together?
Is it fair for schools to market to their students? Should they take a cut? Should they take a cut of the debt payments the students will pay later?
If the schools think it’s okay to pile on non-dischargeable student debt, then what’s wrong with helping the students take on even more credit card debt which is often gentler because the bankruptcy court will let you off the hook?
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