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If bankruptcy were an option, nobody would be crazy enough to lend the money. At least if you can't afford the Ferrari, it can be sold to pay back the loan. At

If bankruptcy were an option, nobody would be crazy enough to lend the money. At least if you can't afford the Ferrari, it can be sold to pay back the loan. At most, the lender only loses on the depreciation. But who is going to buy your degree? It is literally worthless. We already bend over backwards to ensure the loans get offered in the first place given how stupid they are, and now we have to pay them back too?

ryandrake 2y ago
It would be great if easy lending went away. College prices are what they are because they know lenders will lend tens of thousands of unsecured money to just about anyone. So, the market can bear high tuition costs. If suddenly the average student could only bear to pay $5000 instead of $50,000, what do you think will happen to the price tag? Colleges are not stupid. They will adjust their prices to soak up whatever money is available to them.
- randomdata 2y ago
  > It would be great if easy lending went away. It definitely needs to. The whole thing hinges on some tenuous idea of "social good" that I'm not sure has ever been proven. Heck, the title of most educated nation goes back and forth between Russia and Canada. Russia especially does not stand out as some utopia of "social good" – if anything, it is surely towards the bottom of the list. And Canada spends most of its day wishing it were the USA. Not exactly strong markers of "social good" success. If there were an "economic good", then these loans would be also unnecessary. Lenders would be lining up down the street to give you a loan on the basis of a percentage of your future income without any political incentive. But leaders aren't stupid. They know you will never turn the degree into anything. The data about that is abundantly clear.