[ASpring]

I agree it is difficult to fault these students who chose majors without fully factoring in lifetime earnings and that we should allow college loans to be wiped out in bankruptcy.

However, I disagree that we should let lenders vary interest rates by institution and major. Our premise was that these students didn't understand the full picture of what they were getting into. I'm not sure complicating that picture by varying interest rates is going to make the situation better overall.

[JumpCrisscross]

> Our premise was that these students didn't understand the full picture of what they were getting into. I'm not sure complicating that picture by varying interest rates is going to make the situation better overall.

As the article illustrates, complexity isn't the core problem. College applications, student aid and education loans are already complicated.

The problem is critical information is not being presented to students at the right time. One way to solve this would be mandatory disclosures when (a) schools or lenders send out any marketing materials, (b) admissions or loan applications are received, and (c) school or loan acceptance letters are sent out. (I think this should happen.)

Unfortunately, simple disclosure is only a first step. Incorporating the disclosed information into pricing ensures it's received.

Also, if we're going to force lenders to bear the risk of default, we should give them a way to manage it. Forcing a single market rate subsidies students pursuing uneconomic majors at the expense of those pursuing economic ones.

[theli0nheart]

> However, I disagree that we should let lenders vary interest rates by institution and major.

Going to college is a financial investment, so I see the logic in this: just make it a flat "fee" and let the student decide what to study to make it worth it. I'm not sure what the ramifications of this might be, though. I can imagine there might be some unintended consequences.

[Mirioron]

The consequences are that certain easier degrees will get flooded and the degree becomes worthless "because everyone has one". Most of those people won't be able to find work in their field of expertise. College will still be useful for them, but only as a signaling mechanism. But it might even be a negative signaling mechanism, because it would show that the student didn't think through their actions.