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This is not a simple solution. This is yet another government solution to a government-created problem. The "solution" breeds more problems of its own, which
by liber8 14y ago
This is not a simple solution. This is yet another government solution to a government-created problem. The "solution" breeds more problems of its own, which will in turn require more "simple" government solutions. If you need an example of this, take a look at our federal tax code.
The simple solution is to stop subsidizing loans to any student for any degree.
- JPKab 14y agoCan you clarify your statement? Would you agree with subsidizing loans to good students, with impoverished backgrounds, choosing a degree which is in high demand in the marketplace(just an example)? I, for one, am apalled at the gov't subsidizing the huge number of art, fashion, music degrees that they do. I would be curious to see the default rates on these sorts of loans.
- liber8 14y agoNo. If the degree is in high demand, there’s no need to subsidize it. Either banks will lend based on the student’s projected ability to repay the loan or employers (who need people with the skill the student will be learning) will subsidize the student’s education. People like to believe basic economic principles like supply and demand don't apply to things like education or healthcare, even when the evidence stares them in the face. (See millions of unemployable liberal arts graduates and the voracious demand for computer science majors.) re student loan default data, this is very difficult to determine. First, many subsidized loans are being deferred, and thus not counted as "in default", even though they are not being repaid. The only data I can find quickly on the web only goes through 2009, which is obviously going to be dramatically lower than the default rate today.