Reply to Would you support the following policy on student loans?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I got no problems with the proposals.

It doesn't attack the root cause of the problem though - which are costs and costs that keep going up.

Allow student loan debt to be dischargeable in bankruptcy, period.  We allow dvery other debt to be discharged in bankruptcy. When more risk is injected into thos whole stupid system, lenders will start lending less and colleges will be forced to control costs and even slash them.  But with infinite credit taps open and no risk for lenders because they're sheilded from bankruptcy, this entire charade of never ending price increases continues.[/quote]

Where is the risk to colleges if they raise prices?

You're telling us you want risks to lenders because of rising prices.  Do you also want risks to educational institutions for the same?[/quote]

Yes.  If you inject risk into the system, banks will be much stingier lending massive amounts of money to students.  The risk for colleges raising prices is that students will not be able to get enough loans to cover the cost of said college exorbitantly raising their prices.  Not enough students means colleges must cut costs to reduce tuition, or go out of business.

The whole reason we have this debacle in the first place is because of govt intervention removing all risk from the equation.  Credit taps are open infinitely, which means colleges raise prices to whatever they want since students can get loans.  Lenders lend because they have virtually no risk if they make bad loans….they’ll get paid no matter what.  It’s a gigantic credit fueled bubble.  Inject risk and it pops.  [/quote]

Wholeheartedly agree.[/quote]

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