The Responsible Solution to the Student Debt Crisis ?
Simple.
Refuse to loan any money to students unless they attand a Constitutionally vetted , genuine post secondary institution of education THAT DOES NOT INDOCTRINATE STUDENTS INTO SOCIALISM AND COMMUNISM, and who deny freedom of speech, freedom of religion,freedom to carry arms and freedom of assembly.
Put Hillsdale College in charge of vetting the acceptable list and recommending specific changes to those colleges and universties that do not make the list.
That will solve the student loan problem.
What you describe is a dream, not a realistic solution.
A realistic solution would involve getting the federal government out of the student business completely by a combination of loan write-down and hanging the majority of the balance, 75% or so, back on the institution which originated the debt. They would have four choices as follows:
- Collect the debt themselves, with an attachment against their endowments and real estate in the event of default. They could use tools like withholding transcripts or revoking degrees.
- Organize their own group of lenders to purchase the debt and make future loans. Hillsdale is already doing this quite successfully.
- License commercial banks to get back into the student loan business in exchange for purchasing some of the debt. They are already partially there with current refinancing offers.
- The public solution on a state or local level. The Bank of North Dakota already provides a successful model. They limit their loan exposure by limiting lending to students making measurable progress toward graduation in marketable degrees. Tuition at state colleges and universities remains modest compared to most of the country and, as a result of these and other factors, their default rate in near 0%.