Student loans need to be dischargeable in bankruptcy (again).
Do that, and lenders will stop paying for degrees that aren’t likely to produce a paycheck.
That, in turn, will cut the cost of college to something closer to a level that can be “pay as you go”.
Throw in colleges and universities as being the originators of the loan, and I can guarantee ya there will be no more stupid ‘degrees’. Every college and university would have to look to the long term to ensure the ‘degrees’ they are producing are making a roi.
A bankruptcy judge can allow exceptions for cases like this.
Having said that, student loans are really subsidies for liberals who work in the education industry.
Didn't we try this many years ago with the kiddies basically declaring bk right after school ended when they typically had no assets?
The government is the lender for all student loans, now. This was part of the Obamacare act, so Obamacare could, 'pay for itself' on paper. In reality, government doesn't care if you can't pay a loan back, (see Solyndra).
Do that, and lenders will stop paying for degrees that aren’t likely to produce a paycheck.
That, in turn, will cut the cost of college to something closer to a level that can be “pay as you go”.
Precisely. Get the damn federal government out of the business completely. Even then, there will always be lenders available to finance somebody's degree in ethnic studies or whatever useless degree, but they will charge a rate commensurate with the risk.
My former state (North Dakota) had a state owned bank to finance student loans, among other things. They lent very prudently, including amount limits, students being required to put some of their own money on the line and show steady progress toward a degree, etc. Their default rate was very, very low.
Hillsdale College in Michigan goes a step further and won't allow any of their kids to get government loans. They have their own set of approved lenders. Since it is a conservative college with a reputation of turning out useful graduates, the default rate is very, very low.
I'm aware of at least three other conservative institutions (Liberty University, Grove City College, Brigham Young University) which have set up alternative loan pools in similar fashion to Hillsdale. Government loans are not yet prohibited, but they are working in that direction. Again, because all three turn out generally useful graduates, default risk is low.
When I was a pup, there was no shame in taking six or seven years to graduate because it was mostly pay as you go. The work experience which you picked up along the way actually enhanced your employability at graduation.
What kind of fool borrows $160.000 for a degree in music? WHat hope did anyone have that this kid could ever earn enough to pay it back? Most people trying to make a living in music are starving.
What kind of fool LOANS a kid $160,000 so he can get a degree in a subject where he has no hope of earning enough money to pay it back?