[Nifster]

No thanks. Feds shouldn’t be involved in student loans at all

[Buckeye McFrog]

No thanks. Feds shouldn’t be involved in student loans at all

That ship sailed LOOOOOOOONG ago.

And the cost of doing nothing is extremely high. Someone needs to diffuse this ticking bomb, or we're going to be overrun by a stampede of Millenials racing to the polls to vote themselves out of debt.

[genghis]

Too simple no room for graft

[Mouton]

Absolutely, the feds need get out of the loan guarantee market. When the available funds dry up, the demand for ridicules degrees will vanish. Simple econ 101, less demand, supply stays same, prices drop. I would not lose a seconds sleep thinking of a bunch of unemployed formerly paid 200K professors out of lauding about positions.

[Vigilanteman]

Any federal involvement will turn into mission creep and get us back to exactly the mess we have now (or worse).

Any partial bailout (which is likely politically inevitable) must be accompanied by a complete divestiture of Fedzilla from the system. Sell the loans to so many different banks and institutions that it will be nearly impossible to collect them back again.

Those which cannot be sold become the responsibility of the college to collect. Most of them have sufficient endowments to liquidate those loans. Those which do not maybe shouldn't be in the college business or the business of passing out unmarketable degrees.

There are at least two plans already in operation which work well:

1. Bank of North Dakota-- yes, it applies to only institutions of higher learning in the state, but the default rate is near 0% because it severely limits what can be borrowed on fluff degrees and/or students making little or no progress to graduation.
   
2. Hillsdale College model-- no federal loans allowed. They have their own group of lenders to compete for your business.

   There is no reason any other college in the country can not emulate one of these proven models or come up with their own.

[D Rider]

Agreed. How about endentured servitude until the debt is paid?