Doubtful. Student loans are “long shot bets” in the same way that public education is something of a long shot bet.
This stuff only matters if you think America should stay ahead of the curve in innovation. And it is a matter of debate how important or even possible that position is.
Need new engineers? India’s got’em and so does China.
Stem Cell research banned altogether? Doesn’t matter, China, Japan and Europe will do it.
It really is a global market now and there’s a huge pool of highly skilled people. This pool will continue to grow regardless of whether America comtributes to it or not.
You said:You could eliminate the student loan program tomorrow, and there’d be an influx of US banks that would gladly make the loans.
***
These are unsecured loans, without guarantors. None of the banks I represent would lend at reasonable rates for the amounts we are talking about without collateral or co-makers of some sort. Further, govt loans can’t be discharged in bankruptcy. So, I disagree with this point. As to whether the government ought to be in the business of making loans, I look forward to that discussion.