[E. Pluribus Unum]

I am all for it as long as it comes out of the endowments of the universities that harvested them for their student loans.

[Kaslin]

Good point

[ClearCase_guy]

Colleges need skin in the game. Colleges need to 100% control the student loan industry. If someone wants to major in Lesbian Dance Theory, that’s fine — the college can give them a free ride for X number of years. Will the student ever pay them back? Probably not. But if the college is OK with that, then there is no problem. And to be clear: This should not be a “loan pool” where many colleges get together to share the risk. This should be Harvard funding Harvard students. It should be Denver College funding Denver College students. Keep all the action localized and encourage everyone at both ends to make smart decisions.

[LibFreeUSA]

So if they wipe out the student loans of the ones that got the past loans, what about the ones that are about to get new loans for their schooling.?

[Vigilanteman]

Yep. Hang it back on the institutions which encouraged the debt and let them collect it. They could even revoke the degrees for non-payment. If the degrees were worthwhile, then the graduate would be motivated to pay them back.

If not, then . . . it would be no different than a case of a shady used car dealer repossessing a pile of junk.

A minor forgiveness (no more than 25%) could be granted on the condition that Fedzilla sells off and gets out of the student loan business forever.

If a small college like Hillsdale can line up their own group of lenders for their student body, there is no reason that any other institution cannot do the same.