It’s something to talk about I guess but, it’s not going to happen.
The people who are saying this are only making empty promises that they won’t keep to try and get votes.
Eventually one day people might realize the most important name on the diploma is yours, school less so. If you want to go to Harvard, or Stanford, or some fancy private school, you should apply for every scholarship under the sun. There's too many good colleges out there to get a good education for a fraction of the cost.
Crazy notion, but maybe don't pick a major that will make you have to go back to college? Or maybe work for a while in a blue collar job while you decide what you actually want to do.
Whatever, I'm sure I'm preaching to the choir in this thread
This: "or the loan companies allow them to take out absurd amounts of money for a degree that won’t make any money. Six figures for an art degree. "
We already have a structure in place where we encourage banks to make riskier loans as there's little incentive to vet them on a standard ROI basis. If the Feds guarantee student loan debt forgiveness, you remove all motivation for the banks to act as a responsible fiduciary. In turn, this will lead to a run of loan applications from people who have little to no intention of ever paying them back.
Colleges, as has already been the trend with relaxed loan standards, will recognize this increased interest in further education and will continue to raise tuition rates faster than normal inflation levels would justify.
If this is sounding familiar, it's essentially the same type of scenario that lead to the great recession when the housing market crashed. Fannie Mae and Freddie Mac, under federal guarantees, underwrote these subprime mortgages and I think we all saw how that turned out.
I dont see where we disagreed anywhere? My first quote was a quote from Bankwalker in the original post. Kids, adults, and majority of people do not understand money. It has always been this way
as far as a reason that college has increased in cost so much.... government aid has been a big cause. Another cause is lack of education to parents and kids who are taking out loans.
exactly!! X2
