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No, it's not a better outcome than if the market was private because frankly no one would graduate with $150k in debt for a degree in basket weaving if private
by woeirua 7y ago
No, it's not a better outcome than if the market was private because frankly no one would graduate with $150k in debt for a degree in basket weaving if private lenders were backing the loans. A well regulated private market would prevent the extreme situations that we are seeing today.
You can make a (somewhat legitimate) argument that we shouldn't require young kids to major in subjects that result in good paying jobs, but on the other hand you wind up with the mess that we are in if you don't.
The status quo cannot go on. I'm in favor of either fully privatizing the system again, OR fully socializing it. In either case, the government would absolutely not be backing loans anymore.
- heavenlyblue 7y agoWhat does it mean to “fully socialise it” in the context of being from the US? Do you mean buying out all of the universities? PS: I come from Europe, studied in the UK when the tuition was capped at £3K/year.
- woeirua 7y agoNo, it would mirror the European experience. Essentially just capping the cost of tuition, fees and room/board and subsidizing the schools to an extent to make up the difference.
- heavyset_go 7y ago> No, it's not a better outcome than if the market was private because frankly no one would graduate with $150k in debt for a degree in basket weaving if private lenders were backing the loans People get private loans for bullshit degrees all of the time. Lenders don't care, because private student loans are non-dischargeable.
- woeirua 7y agoIn a privatized system student loans would be dischargeable under the existing bankruptcy laws, as they were before Congress changed the law.