It benefits people who can pay back students loans and people who need students loans to make extra money.
Before loans were non-dischargeable, you'd have students run up their debts and declare bankruptcy. This sort of fraudulent activity had no consequences since student loans are unsecured.
The result was that the private student loan market was small. Nobody was going to loan money they'd never get paid back.
Doesn't it also benefit universities who can then keep upping costs because the loans will rise to match the costs no matter what?
Prior to the change was there a shortage of student loans (with a lot less people choosing university) or did we just shift the loan balance from the government to private industry?
Before loans were non-dischargeable, you'd have students run up their debts and declare bankruptcy. This sort of fraudulent activity had no consequences since student loans are unsecured.
The result was that the private student loan market was small. Nobody was going to loan money they'd never get paid back.