Bingo, except that tuition would never fall low enough for most working class parents to afford them. But the loans are federally guaranteed, so the lender would have nothing to lose even if defaulted on. But you’re right. Student loans should be dischargable in bankruptcy just like credit card debt. Both, after all, are uninsured. It’s just that simple.
steelhead_trout: “Bingo, except that tuition would never fall low enough for most working class parents to afford them.”
I don’t know if that’s true or not. For one thing, what’s wrong with working one’s way through college? That used to be the norm decades ago. Even now, junior colleges are fairly reasonable, and it’s still possible to pay one’s own way through college.
There’s another unknown. Government drives everyone else out of charity. If I knew of a poor student who needed help, I’d be inclined to donate myself, but why donate when government is standing by with boatloads of cash, even for worthless degrees? If all the government handouts stopped (and they should), people could always set up charities to help worthy students.
Finally, everyone isn’t suited for college. That’s another problem with the current system. There are many jobs that don’t really require degrees, and there are many students who don’t have the intelligence to earn the hard degrees. There are even more intelligent students who lack the motivation to learn. That’s not necessarily a bad thing. Some people may need to grow up a bit before going back to school.
My point? Government is distorting higher education just like it’s distorting virtually everything else. Government will always be rife with fraud, waste, and abuse. It can’t be efficient. It’s too big. Get government out of the job of being fairness arbiter and wealth redistributor, and you’ll encourage traits that build a society. Right now, government is tearing America down. We either stop that now, or it will stop itself when it falls apart (my odds are on the latter).