How to Handle the Student Loan Crisis?

Stop giving every student a loan. That’s Megan McArdle’s advice on Bloomberg View.

Talking about accredited four-year schools as well as for-profit colleges, she says:

“…stop making the loans directly, then invite private companies back into the student-loan market — and force them to eat some of the losses.” So the companies will have to do what government has failed to do:  “Assess which schools and programs actually add economic value and refuse to fund the ones that don’t.”

One thought on “How to Handle the Student Loan Crisis?”

  1. This makes perfect sense. The Government should stop backing student loans. Tuitions will drop like a rock.

    The thought of a bailout or forgiveness of the existing outstanding trillion dollars of student load debt sickens me.

    As a person who commuted to a low-priced college, on public buses, just so I wouldn’t be in debt when I graduated, I’ll be God-dammed if my tax dollars will go to bailing out someone with a Women’s Studies degree and 100K of debt.

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