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Because the alternative is to offer the poor no opportunity to improve their financial situation through education. Permanent hopeless underclasses do not make
by diyorgasms 11y ago
Because the alternative is to offer the poor no opportunity to improve their financial situation through education. Permanent hopeless underclasses do not make for a stable society.
- adventured 11y agoNo the alternative was to have properly capped student loans to restrain the cost growth, instead of feeding an extreme inflation cycle by enabling an out-of-proportion growth of those loans. The solution was trivially easy: lock student loan growth to the CPI. Instead the US Government drastically inflated the cost of college by funding student loans far beyond the rate of inflation and with zero concern for the potential to be paid back (perfect setup for a bubble and crash). Universities proceeded to go on an epic and unnecessary building and administration expansion spree, vaporizing hundreds of billions of dollars. All courtesy of the US Government's access to practically unlimited free money (the loaned out sum of which it's now yielding a higher profit on than the combined profit of JP Morgan and Wells Fargo; one of the greatest slush funds in world history).