Or make student loans like any other sort of loan. Lenders don't make 100k loans to teenagers with no jobs. They just don't. Its not a thing. In comes the federal gov't. Now kicks out loans to damn near anyone who applies for any sort of education. This ease of funding coupled with the misguided opinion that everyone needs a college education has led to millions of people into irrecoverable debt. People then borrow to go to school as its so normalized, they get a degree that may or may not have any logical payout. Now they try to start life again with still no real marketable skills and 50K+ in debt. Its not surprising that its not working out for everyone.
My biggest qualm is not even with those who are getting into debt. It is with a system designed to screw them. This is no different then the housing crash in '08. Predatory lending is all it is. Just like the housing market, in general, education is a good thing, just like buying a house. But when your lured into a scenario that is super risky and unlikely to payout what your investing. Its totally ****ed.
Colleges are just reaping the rewards of a group of people with virtualy unlimited buying power. Because the students have access to virtually unlimited funds, demand for education keeps growing and hence, prices rise. But because the funding doesn't dry up and level things out. I just keeps sending costs into out space.
I see it like this. Kid, 18 years old, goes and applies for a buisness loan to start a small service company. Say lawncare, needs a truck, trailer, mower, weedeater etc. 20k will get him going and start to payoff quickly. This loan would be rather hard to get as no credit history along with minimal income. But this same student walks in and gets student loan for 50k, 4-5 years before they plan on even having an income and they are approved instantly. This doesn't make sense, and shouldn't happen.
