“Make the educational institution the co-borrower of every loan.”
Any wise college would make admissions based on family income and size of the 529. Poor kids wouldn’t stand a chance in school.
There is no such thing as a co-borrower. The student could walk away and the uni has to pay the bill.
Here’s an idea: Tell the kids not to borrow the money. Done.
Funny how THE most leftest institution in the USA, higher education, has no government regulations on it at all.
There is absolutely such thing as a co-borrower. It is another entity that would benefit by the the primary entity receiving a loan. Often times the co-borrower is a family member who would benefit from happiness at seeing their son/daughter/wife with a loan. Other times it is a government entity who benefits by having certain of their citizens receive certain types of loans. Other times it is business partners who rely on the the primary party and will benefit financially if they receive a loan.
In this case it would be a college who is benefiting from tuition money that otherwise wouldn't be coming in.
The student could walk away and the uni has to pay the bill.
Why would a kid who has been properly educated and has obtained a useful degree decide to walk away from a loan and ruin their credit?