nouseforaname123 wrote:The interesting thing to me is that absent government involvement in student lending and the bankruptcy laws pertaining to student loans, this is exactly the type of general rule that private lenders would use in determining whether a student is a good lending risk. Just think about it from that perspective: If a bank would be unwilling to lend you the money because you would be a bad risk, should you really take out the loan just because the government is willing to lend the money?
Banks would not apply high-minded platitudes and back of the envelope mathematics. They'd look in a nuanced way at the situation before them and make a smart decision. If I had the money I'd certainly lend more than 80K to someone looking to attend Harvard, and at a reasonable interest rate too. I think you, and most banks, would make the same decision.
Your last statement is certainly a good one for people to think about, because most banks wouldn't give people the kinds of loans they can get to go to law school.