No, partly because I’m not saying the schools would go away, just the student loans. It’s a simple function of math, would YOU lend a fast food worker 20,000 with no collateral at all under the assumption that if he passed his classes and got a job in some better field he’d be able to pay you back starting 5 years from now at the earliest? Of course not, that’s a stupid loan to make. Until the government comes in and says “we guarantee you’ll get paid back one way or the other”. The non-government guaranteed loans that do exist have high interest rates and are specifically targeted for expenses higher than the government loans will pay, and they like to sue. Where student loans exist there’s generally a high level of government involvement for this very reason, the people you’re lending to are at the time of the loan a very poor credit risk, they lack a job and job skills, in fact it’s known at the time of the loan that they cannot pay unless something (what the loan is trying to accomplish) changes in their life. Really when you think it through it’s lending people money to go to the casino.
Then post 15 by Vigilanteman makes a lot of sense. Tie the loan to the type of degree.