@drman321 Said
Yes which is why Lili's complaint is coming across as a bit disingenuous. If Ron Paul got his way and did away with federal student loans you could still get student loans from banks the same as you can now.
Most people who go to university are 18 years old, fresh out of high school and do not have credit established. I live in Canada but the banks here, they only typically give loans to people who have established credit and this established credit has to be good credit.
I am not sure how an 18 year old would have established good credit. They would probably need a cosigner. Its not like they have any property to put up against a loan.
@Lili Said
You used to be able to, but Obama shifted all students loans to federal. Basically just eliminated the middleman (private banks). From my understanding, private banks wouldn't loan to students because students wouldn't pay it back (high risk), so the federal program required that private banks provide student loans that were guaranteed by the government. But then student debt got out of control, and in an attempt to reduce debt, Obama made all student loans come directly from the federal government in order to reduce interest rates for students.
If one can only get a student loan via federal government, and this is done away with, students are going to university how then? Not everyone has parents that pay for it and some degrees are so expensive that working three jobs is not going to pay for it.
I get that it will cut down the federal budget spending and all but people need student loans.
In Canada, if you need a student loan, you get from province and federal government. If if America does away with federal student loan, you can get a state student loan, the way we have provincial student loans?