Only allow engineers/science student to get the loan. No Loan for law, art etc.
I might add that those loans should be on condition that they can provide a very clear cut plan from the beginning, i.e.e show what kind of jobs they will get or demonstrate an ability or willingness to go to a med school or an MS/PhD school where they will get a job that they know will pay it back.
I know that those who get into upper tier med schools and STEM grad programs, only a small minority of them even had the time to work at a job of any kind while going to school unless they got a TAship, and if they got one as an undergrad there was often a lot of luck involved. Some of them spend a bare minimum of 14 hours a day, all 7 days a week, in classwork and in research labs.
In any event, their situation would clearly be different from, say, someone majoring in anything ending in Studies.
I would agree...if you aren’t working on a science, engineering, or medical degree....there ought to be a limit of $20,000 max that you can borrow for higher education. The mere suggestion that you get an art degree, with a loan of $60,000, and hope to pay it back over fifteen years is silly. You are simply giving up your chances of buying a house or accepting a marginal IRA account at age 65.
The reality here is that we used to have a limited number of people show up at a university, and the vast majority studied science or engineering. After WW II and the GI bill....that all went away. An idiot will borrow $90,000, get a multi-media degree of some bogus nature, and then fall into shock by age twenty-four at the limited job options, the limited pay, and the amount of taxation. I know people today....who are forty-two, and still owe over $20,000 in student loans. Their lives have been marginalized by this act of stupidity.
Wrong!
Who gets loans for what amount at what rate for what major should be up to the market.
The market will probably get it right, but, if not, no gubmint bailouts!!!