The student loan crisis has so many similarities to the subprime crisis it's uncanny. It is unfair to do this with taxpayers money, which isn't even there, will be "borrowed", and will be even more future debt for the next generation. Haven''t we screwed them enough? Also, many did not go to college because they couldn't afford it and/or didn't want to take on debt. Why should they, who are mostly working class, bail out the college kids debt, who should, by the colleges own advertising, be making more with a degree? Most importantly, a 'bailout' also benefits the financial institutions and colleges who are in the 'elite' class.
The borrowers have large responsibility but they are financial novices when they make these decisions to take on a loan. A more 'equitable' way to take care of this issue to introduce some corrective "skin in the game"
1. The financial institutions that gave these loans should take a hit for not properly underwriting these loans. I.e., X major will earn Y amount on average after getting their degree so they can only take out Z amount in loans. None of that was happening.
2. The colleges themselves have skyrocketed the costs by bloating out and overpaying their non teaching staff over the past 30 years. They have made college dorms look like 4 star hotels versus what they were back then. Colleges they should be involved in the process with the banks to approve loans and chip in to pay the price if they go bad.
Finally, not one further dime of aid or assistance to the colleges unless they strictly enforce a traditional "free speech" environment. Colleges are entirely too "illiberal" and intolerant to produce the future this country needs to compete with China or future powers that be..
