3 ms·
The real solution to this is to open up some kind of bond market for majors. Bundle up a bunch of student loans by major and create a partly public partly priv
by wmil 11y ago
The real solution to this is to open up some kind of bond market for majors. Bundle up a bunch of student loans by major and create a partly public partly private debt obligations.
Schools have far too much incentive to lie about the value of different degrees. Parents and high school advisors don't have the necessary information.
A market device would give students the feedback they need to plan their futures.
Plus if large employers ever complain about the skills that grads are lacking, they can be asked to invest in the appropriate student loan category.
- pigpaws 11y agolarge corps already complain about not having enough 'skilled' labor, so they just abuse the H1B visa system. They don't actively invest in the skill set of their own workforce, let alone that of the upcoming students.
- tacostakohashi 11y agoThere is already a lot of information available about the labor market in general, and colleges are also required to provide gainful employment statistics for graduates. Despite this, it seems that many students make poor decisions, probably for more subtle reasons (easy availability of loans, wanting to experience college, wanting a gap between school and work, etc). Securitizing student loans by major and having a liquid market for the securities is an interesting idea, but its hard for me to imagine that the information provided would have any impact on this problem. If students, counselors, etc already ignore the plentiful labor market statistics available, a I'm sure they'll have no trouble ignoring a proxy for those statistics.