This is the root of the problem. Anyone can get a degree regardless of aptitude. Loans will pay your way in, the school will do everything in their power to stop you from flunking out.
We have to take a lien on loans for cars that in some cases are much less money than school loans.
Maybe make schools take some brunt of the loans. If they feel so strongly that their degree is worth it, its like they should back you as an investment.
Several schools are investing in their students, using the Income Share Agreement (ISA) format. Students do not pay any upfront tuition, the school takes care of it. Then, students only pay when they find a job with a % of their income. Alternative education[1] but also more traditional college are offering this[2][3].
Exactly. If the burden of collecting the debt is on the loaner, they will do a better job of enforcing who gets a loan (which is traditionally the job of the loaner anyway). Student loans get handed out like candy and now we have a continuously-compounding problem of growing tuitions and debt.
If bankruptcy could fix student loans, then the ones giving out loans would be a lot more careful, schools would stop wasting hundreds of millions on new buildings that that are 80% empty, and we wouldn't have a large segment of the middle class population in indentured servitude.
I've been through bankruptcy over decade ago and I'm still paying on a useless ITT tech degree... Wish I had known better when I was younger.
Well, technically I'm paying, I have paid off very little. This is the first year I'll be breaking 2x poverty.
Need-based public aid (whether it's the recipients financial need or societies workforce need, or both) should be grants, and there should be broad opportunities for public civilian service that provides service-based grants not based on specific need, too. The former should have payoff considerations, the latter should not.
Yup. Mortgage lenders do their own valuations on houses. Student loans companies should too. You'll see a rapid decline in shitty degrees. Goodbye Art History.