If you put a cap on max lending amounts the cost of tuition would plummet. Its as simple as that.
Help bridge some of the financial burden through financing as all businesses do for capital improvements. If the students still can't afford it then they have to make the decision to go to a more cost effective school or work while attending but not committing full time.
When the money supply is unlimited its a no-brainer for colleges to charge more.
Natural Immunity Croc
Natural Immunity Croc
I went to the website on her twitter...in 1999 she graduated from private, expensive, Boston University with a degree in social work. Was she misled on what it would cost to go to BU and what the financing terms of her loans were? Was she misled on what the earnings potential of a degree in social work were?
"I am a victim, I will tell you. I am a victim."
"I am your retribution."
When you have stories of 20 year olds that have over 15-20k in debt that's an issue and its because they were granted too much to start with. The cap should be lowered as the program should help BRIDGE any shortfalls in personal financing. It still incentivizes going to college but will reduce the money supply in the 'higher institution' economy which will create negative inflation.
Outside of the student loan market there are still ways to finance your education. Go work at a bank - McDonalds - Home Depot - ANYWHERE. There are so many for-profit businesses that offer tuition reimbursement FOR FREE.
Its so lazy to say that student loans are the only way to get lower income /middle income families to engage in upward social mobility.
Natural Immunity Croc
She stuck around to get another degree from BU, then years later decided to go to another private school (Brandeis) for a third degree. I dunno. I think someone smart enough to get into these schools/programs and finish them probably knew exactly what she was getting into.
Of course there are caps as there would be with any risk based lending market. My argument is that the caps should be lowered both in amounts per year and in the aggregate.
That is why I have said in numerous posts now that they need to be LOWERED.
Its simple economics. As the money supply increases inflation follows. Its the easiest way to address the cost issue of this dilemma.
Natural Immunity Croc
The current levels are whats causing the inflation. There is no other factor that comes close to having this impact. This is THE issue that needs to be resolved.
I'm sorry - If you can't figure out a way to come up with 10-15k a year on your own (working - tuition reimbursement) then quite frankly you don't deserve to go to college. If its as important as everyone is making it out to be then prove it by making the necessary sacrifices.
Natural Immunity Croc