“Student loans from the federal government cannot be discharged in bankruptcy...”
Therein lies the entire problem with the student loan program:
1) The loans come from the government
2) The loans can’t be discharged in bankruptcy
ALL of the risk is on the shoulders of the borrowers. When everyone involved in a transaction bears some risk if the transaction goes bad, then everyone works to ensure it will go well.
When only one party to a transaction bears any risk should it go bad, the other parties involved will not take any precautions to prevent a bad transaction.
So,the schools push government loans on students. The schools grow and get revenue. If the loan goes bad (because the student couldn’t get a job because they majored in basket weaving) the school isn’t out a dime.
If the schools lost money if the student couldn’t pay back the loan, you’d start to see schools steering new students into practical majors (like business) and away from trendy majors that have not job prospects.
Perhaps this nugget should be shared with the rest of Zero's BLS crew and their cheerleaders...