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"Society" doesn't figure anything out. If "Society" wanted people to go to college then it would it give it to everybody for free. People are incentivized to a
by bananabreakfast 6y ago
"Society" doesn't figure anything out. If "Society" wanted people to go to college then it would it give it to everybody for free.
People are incentivized to act one way or the other. Less-wealthy people cannot afford college tuition, and the government cannot mandate that banks give away money to extremely risky but ambitious people.
This same problem exists with extending loans in general to risky, low-income individuals. Yes their rates are insanely high, bordering on predatory, but they also have sky high default rates so the alternative is they simply cannot get a loan at all.
This is essential economics.
- psadri 6y agoThis argument is missing one important part. The prevalence of student loans has caused the cost of education to skyrocket, pushing it even further out of reach. So now even people who previously afforded higher education need to get loans. It’s a self-fulfilling system.
- WalterBright 6y agoIronically, every governmental attempt to make college more affordable has caused tuition to rise.
- lonelappde 6y agoExcept the original attempt: public schools.
- WalterBright 6y agoLooks expensive to me: https://www.governing.com/gov-data/education-data/state-education-spending-per-pupil-data.html https://www.governing.com/gov-data/education-data/state-educ...
- prostoalex 6y agoThose only look cheap if unfunded pension obligations are kept off-balance.
- imtringued 6y agoThey shouldn't get the loan then. Certain types of loans just shouldn't exist. If you know that certain people have a high chance to default then giving them a loan is irresponsible.