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Good luck with that. You just made college out of reach for everyone that isn't already wealthy, exacerbating inequality and further entrenching class boundarie

Good luck with that. You just made college out of reach for everyone that isn't already wealthy, exacerbating inequality and further entrenching class boundaries. To be clear, I agree with you, rip out the loan guarantees and let the private market deal. But progressives would never allow this.

mountainofdeath 7y ago
You say that like it's a bad thing and not the real intent.
smileysteve 7y ago
> You just made college out of reach for everyone that isn't already wealthy Immediately yes, fortunately, there is a supply and demand curve, so if you cut the demand for a bunch of colleges that already exist; then the price should find a new equilibrium. Of course, as is the science of economics, time and outside influences matter.
- marrone12 7y ago
  So what do you say to all the people for who college will be out of reach while the market "equalizes"?
  - smileysteve 7y ago
    The same thing we're telling financially concerned people now; public colleges, community colleges, trade schools. Fortunately, in a low unemployment world, also means that hiring should be very elastic to this change.
aikah 7y ago
> Good luck with that. You just made college out of reach for everyone that isn't already wealthy, exacerbating inequality and further entrenching class boundaries. You could apply that argument to anything. "Good luck with that, now people can't afford mansions, Good luck with that now people can't afford private jets". Should everybody be able to afford mansions or private jets? No. College should either be free, thus directly paid for by the government, or not everybody should go to college, you can't have it both ways, or that's how you'll get your big next financial crisis. The government should not back private loans, period. Cost of education has skyrocketed BECAUSE banks started to loan crazy amounts of money to every students. This is free money for the banks.
- vonmoltke 7y ago
  > The government should not back private loans, period. It's a good thing they don't, then.
whyenot 7y ago
You can get a very good education at a pubic university, for example in California's State University system, for about $6,000 a year. It wouldn't put college out of reach, it would put going to an expensive liberal arts school out of reach. I think that's OK.
chrischattin 7y ago
Wouldn't they be in roughly the same position, just without a ton of debt? People have a different emotional response to predatory lending like payday loans, but not those same practices in student loans.

mountainofdeath 7y ago

You say that like it's a bad thing and not the real intent.

smileysteve 7y ago

> You just made college out of reach for everyone that isn't already wealthy Immediately yes, fortunately, there is a supply and demand curve, so if you cut the demand for a bunch of colleges that already exist; then the price should find a new equilibrium. Of course, as is the science of economics, time and outside influences matter.

marrone12 7y ago
So what do you say to all the people for who college will be out of reach while the market "equalizes"?
- smileysteve 7y ago
  The same thing we're telling financially concerned people now; public colleges, community colleges, trade schools. Fortunately, in a low unemployment world, also means that hiring should be very elastic to this change.

aikah 7y ago

> Good luck with that. You just made college out of reach for everyone that isn't already wealthy, exacerbating inequality and further entrenching class boundaries. You could apply that argument to anything. "Good luck with that, now people can't afford mansions, Good luck with that now people can't afford private jets". Should everybody be able to afford mansions or private jets? No. College should either be free, thus directly paid for by the government, or not everybody should go to college, you can't have it both ways, or that's how you'll get your big next financial crisis. The government should not back private loans, period. Cost of education has skyrocketed BECAUSE banks started to loan crazy amounts of money to every students. This is free money for the banks.

vonmoltke 7y ago
> The government should not back private loans, period. It's a good thing they don't, then.

whyenot 7y ago

You can get a very good education at a pubic university, for example in California's State University system, for about $6,000 a year. It wouldn't put college out of reach, it would put going to an expensive liberal arts school out of reach. I think that's OK.

chrischattin 7y ago

Wouldn't they be in roughly the same position, just without a ton of debt? People have a different emotional response to predatory lending like payday loans, but not those same practices in student loans.