End it. Let banks make loans that are backed by real collateral.
Then, there is the exploding priciness of textbooks. A little bit of research will reveal the fact that American publishers are no more. Just check out the Pearson Company and its connections and one can understand more about the scams parents are enduring.
How about a new “rule”: never borrow more than you can afford to repay?
I have a better idea.
Immediately end, cease, desist, quit and stop all federal funding, loans, grants, subsidies and handout to colleges, universities and students.
STOP NOW!
Just like mortgage interest tax breaks are one reason why home ownership is so expensive; this government handout is the key reason why college expenses and tuition is so expensive.
And when you consider the majority of colleges and universities are little better than liberal indoctrination sites for idiot snowflakes - the need to cease this multi-billion dollar waste of taxpayer money is great.
STOP ALL FEDERAL FUNDING OF COLLEGES NOW. TODAY.
End the government guarantees to banks! Let the banks decide how much money to lend an unemployed womens’ studies major.
Just end the Dept. of Education.
Its another Fannie/Freddie time-bomb waiting to explode
$4,000 for the student’s first year at the college
Headline: Republicans Want To Stop Poor From Going To College
Get the government out of it. Let banks decide
* Do we need more “gay black womyn studies” graduates? Or are there already so many that graduates will at best be serving burgers or coffee and not able to repay the loan
* Is it a good idea to loan $50k/year for an “Anthropology” major (a “worst college major” for salary on forbes)? Or is that major only worth $25k/year? If students can only get a loan for $25k, colleges will need to adjust or students will not enter the major (and colleges will need to adjust).
If loans start being given based on probable outcome and ability to repay the loan, everyone wins. (expect people who want a useless major and politicians who want to pander to them) Banks are good at predicting ability to repay -
until the government steps in and yells RACISM, SEXISM, and CAPITALISM SUCKS. And employers will have larger pools of graduates with useful skills. And more graduates will have job opportunities. And I’d bet a lot of college administrators would love to teach and do useful research in their institutions but are restricted by PC terrorist who are supported by government interference in paying for education.
Sabbaticals are waste of taxpayers money.
Professors — start working a 40 hour week, and no pay for the summer three month hiatus (unless you want to teach during those months).
Eliminate government loan programs.
Leave the loan programs to private banks, and watch them provide loans at their own peril if not backed by adequate collateral.
Go back to tuition costs relative to that of pre-1970’s when anyone could work their way through college (as I did).
BS. I got a job and laid mine back. If a millennial wants to rack up $50-100k to get a worthless degree that makes them feel good, that’s on them.
So, how about this:
1. Get the Dept of Ed out of the loan business completely
Or, if they want to stay in it
2. Only loan for those wanting a STEM degree. Everyone else gets it for a private lender
Tuition costs will drop like a rock and the number of Pre Roman Feminsit Studies graduates will fall dramatically.
My proposal:
1) Borrow whatever you want
2) Put up collateral that equals or exceeds the value of the loan
3) Pay back the loan or lose the collateral (and your ability to make another loan)
4) Have a nice day
If you’re going to make any college debt dischargeable in BK, you will end the student loan program. Period.
Too complicated. The answer is simpler and already understood. If people can’t pay their debts they go to bankruptcy court. They either liquidate the debt or restructure it.
Just change the law back to the way it was to allow student loan debt to be discharged in bankruptcy court and the problem will solve itself.
Tuitions will plummet as what people can pay meets what universities can charge.
Loans will not be made unless the borrower can demonstrate they will be able to pay it back.
Colleges have a lot more non-faculty parasites than they had in the 70s. I was looking for a link but I remember hearing that it was about one to one ratio of non-faculty to faculty 40 years ago, now it’s 2.7 to 1.
“co-signed in full by the college”
In theory, this is a great idea and holds colleges responsible for turning out employable grads. In the current campus political environment, it would give school admins free rein to keep out “undesirables” (a.k.a. anyone to the political right of Mao Zedong).