Indentured servitude.
My solution to every debt and legislative bubble and malformation in our economy is the same.
Kill the Federal Reserve and restore real money. It will automatically shrink government in every area as monetized debt and fake interest rates could no longer be used to support such “progressive” social-engineering schemes.
The easiest way to return balance is to introduce risk to the lender. Right now they can loan any amount to any person and have no fear the person will declare bankruptcy.
My first idea would be make them pay it back?
Capping the loan limits isn’t ever going to happen - that would mean a whole slew of college juniors would have to drop out... and the colleges/universities themselves would scream about that (never mind the students).
35 years ago my 4-year tuition was paid for in full via a $1500 scholarship. My son is in the midst of his freshman year at around $16,000 total cost per semester. It’s about costs way outpacing incomes - that’s what’s generating the loans.
Fixing college education first starts with a proper understanding of what a “right” is and is not. There is no inherent right when the action requires work from others. You have the right to breath because that is something that you can do on your own. You do NOT have the right to healthcare because someone else (doctor, nurse, etc) has to provide their labor.
That being said, no one has a right to education. The people (government) may decide to enact programs that improve the education of the community but it is still not a right. That brings the question, what value does education bring to the government. Primarily a better tax base. Better education generally means more and better paying jobs. However, education for education sake is NOT in the best interests of government.
Loans for education should be based on that degree’s ability to pay off that loan. The private sector as a far better incentive to make sure that happens as opposed to government. To that end, government should not be involved in loans for education.
If there is any call for government involvement for education, it should be limited to subsidies to address specific shortages that are necessary for the good governance of a city, county, state, feds. A good example of this is the ROTC program which pays for education in exchange for a work commitment.
That’s idiotic. The one thing that would solve the student loan “problem” overnight would be allowing them to be discharged in bankruptcy again. Once lenders have to consider risk again in lending and rates, and students can’t be held in debt slavery forever, the problem disappears...
Cap it? Nahh... Student loans are no longer immune for bankruptcy. Done.
Risk will balance out, and colleges will compete on the open market for students. Sure, Harvard will still cost a mint, but after half the rest of colleges fold, the market will be open for something far cheaper and better. And tax payers will save a bundle in both taxes and university costs.
they borrowed the money...if they overextend, whose fault is it?
Student loans are a means to launder money to fund the entrenched left in academia.
If student loans have value, in terms of increasing the value that student can produce for a future employer, then that employer should be willing to underwrite the loan, and provide the student with a contract to repay it from earnings following graduation.
He is wasting his breath. The Democrats ARE going to propose a student loan forgiveness scheme.
It’s electoral gold. Gonna win the election for them in 2016.
Despite what many may think. A college education isn’t a right. I never took out a loan so I never had to pay anything back. I picked a school I could afford and got a p/t job to help my parents pay for it. Oh, and I didn’t party my way through so I could take the max. hours and graduate in 3 years. Done and done.