This is a problem created by the government. If the government steps away form backing student loans, this problem will self correct.
When this blows up in Fed.gov’s face, just like Fannie and Freddie, people will be amazed to see how much outright fraud is in this system.
Perhaps, but the real solution to making colleges and universities ‘affordable’ is ceasing with the practice that everyone should have a college degree and then placing stricter requirements on government and private college funds, etc. Having taught at a university for nearly a decade, whether a college is for profit or non-profit, everything revolves around the $$$$! Research how many actual students are paying verses those receiving Staffords, etc. End this sh** and colleges and universities will inherently have to reduce prices to compete for students and real $$$.
A year of technical school cost me $1,200 in 1974...
As a potential employer, I am interested in how the candidate financed their education. All things being equal, I would pick the candidate who at least paid for at least a part their own education.
where in the Constitution does it permit the federal government to give my money to some millennial twit to study Trangender Cambodian Poetry or some such nonsense?
Student loans should be illegal.
Maybe they think the government will bail them out, maybe they think "screw the big banks they owe it to me" or whatever.
I had $4,000 in student loans when I enlisted in 1971. That equates to about $20,000 in current dollars. I paid the loan off in three years while making about $375 a month or less. That $375 looked like about $1,700 in 2017 bucks about 1/3 of contemporary salary expectations of today's graduates.
Alright, I did get an all expense paid trip to Thailand and lodging for a year, but no graduation summer in Europe, no Porsche, no designer dog, no condo in LaJolla, no health club membership...yada yada yada.
The encouraging thing is that the raw number of borrowers does not yet seem to have reached critical mass to where loan forgiveness becomes a political inevitability.
But if nothing is done we WILL get there.
I’ve got one full time in college, one part time paying her own way.
The full timer is going for engineering. About 1/3 was scholarships. We loaned him most of the rest. He has a small amount of student loan debt which he plans to pay off very rapidly.
His college job actually has tuition reimbursement so thats also covering part of it.
1. Never, ever allow these loans to be discharged in bankruptcy.
2. Never, ever use any taxpayer money to forgive them.
3. Eliminate all further government sponsorship or involvement in any form of student loan.
These steps are necessary to crush the Intelligentsia-Media complex. The principal enemies of the United States.
USC tuition growth through the years, until 2016:
https://dailytrojan.com/2016/03/06/usc-tuition-years/
Current tuition (2017-18 academic year) is not shown. It’s $53,448.
The Government making these jumbo loans to kids who have no idea what they are doing is akin to child abuse - call it abuse of the youth. Those who make the loan make it look like easy money and it begins the culture of welfare - the government provides everything.
This article should be titled, “The Rise of the Brown Shirts.” This indebted generation will rise to the beckon call of any tyrant promising them jobs and college loan forgiveness. They will be the arm of the Deep/Global State...
While I commend and am proud of my daughter for obtaining an family nurse practitioner masters degree, she does not realize she has destroyed her family’s finances through student loan debt. Her income differential will never be enough to match her loan payment.
I never saw the wisdom in getting loans for an undergraduate degree. It limits ones potential for a graduate degree or to do a thorough job search when one graduates.
Look at the housing that college snowflakes now have as they borrow their supposed future earnings (with exponentially growing interest costs on top) and make huge sacrifices on their futures for the sake of living in luxury now.
http://fortune.com/2015/09/07/college-dorm-rooms-luxury/
50K for a degree in interpretive dance and women’s studies sounds like a bargain.
4 years ago I went back to school and got my MBA. I was broke because of fallout from 2008, and unemployed. I paid for the entire thing with student loans, and yesterday I made my final payment. The problem, more than anything else, is that we allow loans far in excess of actual earning potential for the degree being sought. Limit total loans across a degree program (4 years for Bachelors, 2 for Masters, 4 for Doctorate) and specific to that field of study to no more than the average first year earnings of someone with that degree, and a lot of the problem goes away. In other words, if the Average Comp Sci grad hired to do Comp Sci stuff earns 60 grand year 1 nationwide, and the average Philosophy grad hired to do Philosophy stuff earns 20 grand a year nationwide, then the Comp Sci grad can borrow UP TO 15 grand a year (60/4) whereas the Philosophy grad could have only borrowed 4 grand a year (20/4). If first year Doctors only make $60 grand, then med school could only cost $15 grand. Once you tie loan to the collateral you are creating (just like with any other loan), you start to get fiscal sanity. The second provision would be that if a student cannot get a job in their field of study within 5 years earning that first year average, there should be a clawback on the money charged for tuition. This would then hold the universities accountable for only producing degree programs that actually create employable people.