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Won’t things like blanket student loan forgiveness or very cheap student loans make such moral hazards even worse? Publishers, college administrators, football
by whywhywhydude 3y ago
Won’t things like blanket student loan forgiveness or very cheap student loans make such moral hazards even worse? Publishers, college administrators, football coaches, etc. will try to extract as much as possible from the free student loans provided by the government.
- sowbug 3y agoHang on there. A legal hazard is not necessarily a moral hazard.
- ChadNauseam 3y agoOf course it would. There’s an argument that cheap student loans combined with need-based scholarships are one of the factors that caused college prices to balloon in the first place. Need based scholarships allow universities to charge everyone the maximum they’re willing to pay (“just give us your parent’s income and a ton of other data, and we’ll tell you how much you have to pay to go here!”)
- dehrmann 3y ago> football coaches The football team probably brings in enough revenue to pay the coach.
- downrightmike 3y agoSince the vast majority of tuition is just stuffed into endowments, the repayment of funds from the scams should be taken from the endowments.
- Dalewyn 3y agoAnd now you know why there are substantial and significant oppositions to forgiving student loans. Not only is the notion patently unfair, it doesn't even address any of the actual problems and will just make them worse.