[Vigilanteman]

Sensible plan.

However, political reality is that some bailout is inevitable. A partial bailout in return for getting the government out of the loan business completely would be a bargain.

Logical Seven Point solution to the student loan crisis:

1. Write off 25%. This is a necessary concession to the debtors who, in many cases, were duped into taking out loans they couldn't afford.
   
2. Return 75% to the institutions of origin for collection.
   
3. Institutes get to keep 5% of the 75% for their trouble but must remit the 70% back to the government.
   
4. They are free to hold up transcripts, cancel degrees and employ all the other measures they did to collect against the debtors as when they were students.
   
5. If the institutions still cannot pay back the government within the normal loan times, the government is free to attach their endowments, real estate and other assets.
   
6. Government gets completely out of the loan business and encourages the institutions to line up their own lenders. If a tiny college like Hillsdale (Michigan) can do it, then there is no reason anyone else can't do the same.

   Yes, the taxpayer takes a 30% hit up front to liquidate this crisis, but that is far better than continuing to grow this monster.

[Graybeard58]

. This is a necessary concession to the debtors who, in many cases, were duped into taking out loans they couldn’t afford.

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If they aren’t smart enough to figure out they can’t afford it, perhaps they don’t belong in college.

I spent 4 years active duty and even with the g.i. bill and me working, it didn’t take me very long to figure out, “With my young, small family, I still couldn’t afford it.

I managed to work until I was 54, with my children grown, I retired, happily retired for almost 16 years now.