So, why are those businesses profitable, then?
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Replying to @doubtthat11
A) Their profits are a trivial amount of the burden of student loan repayment. B) If govt. costs exceeded third-party provider costs, it's possible direct processing would increase repayment costs. C) Processing fees are a total and utter red herring in this debate!!
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Replying to @Noahpinion
I would say: 1) Administrative costs are always relevant, even if they don't solve the problem in this case 2) Servicers can be predatory. Obama added rules to restrict some of that, now it's starting up again. 3) Cost of forgiving high, I think a decent option is no intrst
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Replying to @doubtthat11
The mental gymnastics required to pin the student loan crisis on third-party processing companies are just SPECTACULAR here. It's like watching a contortionist.
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Replying to @Noahpinion
Yeah, man, you know that's not what I'm doing, but ok.
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Replying to @doubtthat11
It seems clear that at first you mistakenly thought private companies owned the loans, and when I informed you otherwise, you looked it up, realized the error, declined to admit it, and shifted the discussion to the irrelevant red herring of third-party processors. ;-)
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Replying to @Noahpinion
Yeah, I really enjoy your posts. That's not what happened. You assumed that I was speaking about institutions holding the loans, not doing the processing.
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Replying to @doubtthat11
"What do you think about just converting the loans to interest free? That's the part that I find most objectionable as private institutions are making generous profit for not really doing anything." <-- But doing this wouldn't cut out the need for processing
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Replying to @Noahpinion
It would eliminate the private companies doing the servicing, making generous profits, and engaging in predatory behavior that justified regulation that is currently being eroded. It's an industry that draws predatory companies like flies to shit.
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Replying to @doubtthat11
A) It would NOT eliminate them at all, people make payments to pay down the principal of their loans. B) You have zero idea whether they are making "generous" profits. C) It's not clear what the "predatory behavior" is. The govt. made the loans.
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In other words, every single piece of your case falls apart at the slightest touch.
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