That is real under any accounting rule. A loan program that breaks also under fair-value is normally planning to become making a revenue for taxpayers, nonetheless it could nevertheless make a loss. Conversely, that loan system estimated to break also under FCRA is much more prone to keep taxpayers keeping the bag if more borrowers didn’t repay their debts than anticipated, but may also nevertheless create earnings.
The answer to the conundrum would be to move the majority of the market danger onto borrowers all together, while continuing to safeguard borrowers that are individual income-based payment. Then whether the government accounts for that risk or not becomes a moot point if borrowers bear the risk of higher or lower overall repayment rates. By meaning, the loan system breaks also for taxpayers. Pokračování textu End of government earnings on figuratively speaking: Shift danger and lower rates of interest