| > I would make student debt dischargeable through bankruptcy and I would also favor the federal government no longer providing, subsidizing, or guaranteeing student loans. I completed a Bachelor and Master degrees at a top 50 world-ranked university with an (Australian) government sponsored loan of, by graduation, around $30k USD, that I never would've had a hope of funding privately at that point in my life (or honestly any point after if I had never gotten the degree and hence a high-paying job). My loan is not dischargeable through bankruptcy, and is repaid as a percentage of taxable income (~10% at the top tier), and not repaid at all if you earn below a threshold a few multiples above the poverty line. The "interest" is actually just inflation as the cash rate from the reserve bank is applied to the outstanding balance at year end. My interest last year was $800 AUD on a $40k AUD balance. I disagree that the problem is specifically easy access to capital. There is a value in attending university; it creates an educated population which benefits everyone. I believe the core of the problem in the US is the lack of appetite for regulation and government intervention leading to a situation where the government guarantees private capital to fund things that they don't control the cost of. This creates a reason for the lender to discount the risk of the debt (because the government guarantees it by making it undischargeable) leading to capability for borrowers to get bigger loans. Universities quickly cottoned on and billed more for less, and the cycle continues until it (eventually) collapses. The cost of degrees in Australia are easily regulated as the majority of universities are government institutions. There is one private university but the government loan limits are often not enough to finish a 4 year degree there so in reality only rich kids whose parents wish to buy them business connections attend. I think it's the government guaranteeing loans to expensive institutions are the problem, not that people are getting degrees. Why remove all government loan assistance? Just stop giving it to people who want to go to private universities. |