[jessewmc]

A lot of these problems are solved by making student loans dischargeable and subject to market forces. Nothing like someone with monetary incentive to sort out who has a positive ROI on education.

As a side effect it would almost certainly make American universities much leaner than the zero-risk loan-glutted monstrosities they are now, which also means more people could afford to go without a loan.

[onlyrealcuzzo]

I completely agree. I think the biggest problem with the current situation is that these loans are non-defaultable. If you want something to cause a bubble, let banks lend money with no risk of default!

[scottlocklin]

Better yet: make the school liable for the loans if the student defaults.