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Even if schools could accurately estimate the "value" of a degree based on expected future earnings, that estimate is going to be affected by a potential studen
by theevilsharpie 6y ago
Even if schools could accurately estimate the "value" of a degree based on expected future earnings, that estimate is going to be affected by a potential student's employability, and the risk that the student may not complete the program.
"Tie student loan funding to the value of a degree" is a fantasy. In the real world, what would actually happen is that student loans would become limited to those who could put up some sort of collateral, which for the figures involved involved in a typical college education would largely limit it to the already-wealthy.
- lotsofpulp 6y agoIf the goal is to provide the non wealthy with the ability to attend higher education facilities, then scholarships or grants or taxpayer funding for the school is the proper method. Giving out blank check loans with no underwriting standards does not help the non wealthy. It results in what has already happened in the US, schools collect as much tuition money as they can since why not, and the non wealthy end up indebted for the rest of their life.
- imtringued 6y agoThis is also the same reason that payday loans are predatory. You are giving someone a loan who has been rejected by all other credit institutions. The only reason why you are giving that person a loan is because you want to take advantage of their weaknesses and make a profit out of their misery. The only real way to help is by giving out money that they don't have to pay back.