Originally Posted by
Daly
Of course they are federal loans. No bank would be stupid enough to loan out this money.
“We are going to make sure if anyone wants a degree that they can get one” - US politician
This line of thinking is what has caused price inflation on a scale unseen by any other industry (other than Medicine which is another government boondoggle). Colleges and Universities have had a government backed blank check to expand with an accompanying cost.
If 30 years ago we made the decision to not back college loans there would be no 300K basketweaving degrees. You wouldn’t have some 20 year old being unproductive for 4 years and charging $7 Starbucks. Used to be you worked your ass off in the summer and then lived hand to mouth. It was “part of the experience”.
Government pulls the loans and colleges wouldn’t build a 100M dorm wired for sound, a new football stadium and new facilities. Tuition would need to be competitive. 100K film degrees would crater to a much more reasonable level.
I feel like I made a post elsewhere on here that was basically this, but yes fully agree. Don't forget George W's bankruptcy bill that made student debt unforgivable.
Boondoggle is probably the correct term, but sure reads like a long-term scam when you think about it. Government enables an industry to rape its customers, then pulls the carpet out from the dumb customers who couldn't make smart choices. Now they, like those Columbia kids, are essentially slaves to the gvmnt for life.
I worked full-time throughout my college years, with the exception of my frosh year when I had a partial scholarship and just worked a work-study job that came with it. After that, it was my 32-35 hour a week job had first priority, then fit in whatever classes I could. Only took 2 loans ever, totaling about $6k. Long paid off. Obviously, I am against the forgiveness ideas the nutjobs are pushing in DC.