[ksdale]

Exactly, people get loans for houses and cars, and the banks make damn sure you're a good credit risk. For college loans, it's literally the opposite. Since the loans are so hard to get rid of, the only incentive is to increase the number and size of the loans.

The issue is that if lenders looked at creditworthiness for college loans the way they do for mortgages, either the price of college would have to decline precipitously, or they would trust far fewer people with that amount of money.

[betwixthewires]

I've been shouting this from the rooftops at anybody who'll listen for several years.

The trick to fix our college system is simply allow student loans to be discharged through bankruptcy, like any other loan. It is a simple incentive shift that changes the whole dynamic of the higher learning industry. All the problems with it that we talk about nowadays will right themselves and everything falls into place with this one weird trick.

[baumandm]

If you complete your degree and declare bankruptcy, you still get to keep your education. So what's to keep every student from going to college, getting a diploma, discharging their debt, then getting a job?

I'm not pro-student debt, but I don't see how this is sustainable for colleges either.

[randomdata]

If all you want is an education, that can already be obtained for free. No need to take on debt for that. The value proposition colleges claim to bring over education, and why you might consider debt to obtain it, is an associated certification. Certifications can be revoked.

[throw10920]

Very good points - I had no idea of this crazy situation for student loans.

So, perhaps, "student loans" need to go (in the sense of all of the awful regulation (or lack thereof) around them), but not necessarily "loans to students to earn a four-year degree".