I believe I remember the Dems floating the idea that if you ‘take a Government job after graduation, your loans will be forgiven’. I can tell you that loans, if taken out by a parent who then dies, ARE forgiven. The student loan program, after being Federalized so the Government could reap the profits of the interest, will go into default and there we are with another area of financial crisis.
An awful lot of individuals who were unable or unwilling to make the effort to acquire a certificate of competency in a particular field of study that led to gainful employment, were simply GIVEN loans with no visible collateral, and when the time came to repay the obligation, they had no means of doing so.
Trapped like a fly in a spiderweb, they could only struggle futilely. The new liberal solution? ALL college level education should now be “free”.
Not everybody is college level material, so this casting of seed on barren ground is futile at best. The striving and deprivation that are involved in the years of acquiring the necessary training or mental discipline are themselves a means of forging a productive and satisfying lifetime.
Not to say, that those who either by talent or by inclination, do not seek a college degree, are in any way a lesser person than the student who had prepared in advance for college. The problem is, that those who prepare for trade work hare held in lower regard than those who aspire to lofty professions.
But plumbers are as important to any society as philosophers, and any economic model that results in making either plumbers or philosophers of lesser value, shall find that neither their pipes nor their theories hold water.
Next a kid with no job who could not buy a TV or car is given in excess of $17,000 annually for the purpose of getting an education.
The kid follows his/her dream and gets a non-revenue producing college education/degree, or worst they blow it on a great apartment, consumer purchases and partying....
All the time they are borrowing the money which adds up to the value of a starter home after four years, they come out of college with basically a monthly payment equal to their rent or a substantial amount towards a home loan.
No one tells the kid they could buy a house for $100,000 and it would take a $750 a month to pay the loan off in 30 years, but essentially this is what a kid signs up for - is it then any wonder there is a problem when they cannot get a job with the 'LACK' of skills to enter the job market after college.
Now let the kids who go free because of race make it to graduation without debt, they are then given Small Business Loans, or hiring preferences to help gain employment or start a business.
Part of the solution is fewer costs associated with the institutions payroll and fewer students in non-employable degree study programs attended with Loan monies.