So obviously since so many many of these loans have gone bad, the interest rates for these loans, when done in an unsecured manner, have skyrocketed right? Thus reducing the overall number of loans and reducing the risk pool to only those who are most qualified to repay their debts.
Oh, shoot, that’s a real solution, instead, let me guess (since I couldn’t be bothered to read the likely great article on the subject..) Let’s see - lower payments, lower interest rates, with interest forgiveness to get people to start paying their debt again, and for those who have no real hope of turning their $230,000 women’s studies degree into anything more than a runner at a Starbucks, debt forgiveness?
The real problem is allot of graduates in Science and engineering are working at Starbucks as well as Business majors. 75% of college graduates in STEM are not working in STEM. Lots are working at Krogers’.
When these loans were made nobody involved in the loan programs really cared if they were ever paid back. This was never about financing education for young Americans. It was always about pouring money into academic institutions to keep massive numbers of marginal people employed. Think of it like the academic version of “Cash for Clunkers,” whose sole purpose was to prop up a failing U.S. auto industry.