the problem: easy gov’t credit for student loans.
This is the Ivory Tower variation on the derivatives debacle, and the bill is coming due.
The solution: no student loans for non-tech/biz/science majors.
Ah, the schools don’t like it? OK..! Then they CO-SIGN the loans, and student debt for such majors should be dischargeable via bankruptcy, just like real estate and ANYTHING ELSE.
No special rules for Universities.
The premise for college is that young people go there to improve themselves and make more money later. This fails that test on both grounds; they’re worse off, and they’ll make LESS later.
Who wins? Universities.
Such major are conjured up simply to provide a demand for profs whose skills aren’t marketable in the private sector.
Medications and ladders have warnings labels for the buyer. Securities have loads of warnings for the buyer also.
Why are there no warnings AT ALL for such majors to impressionable young people with access to easy credit..?
THIS IS PREDATION AND FRAUD.
That's something I've also been advocating for a while. I would go further: have the colleges BE THE LOAN ISSUERS, with the loan money coming out of their endowment/budget, and their yearly budgets being dependent upon the repayment cash flow. And, yes, loans being discharged in bankruptcy.
Really suddenly, they will stop admitting students who are unqualified to be in college, and stop offering courses that do not make the student more viable in the job market.