Monday Oct 13 2014
The big problem is the $1+ Tillion Debt. So far so good. This is keeping students hourseoving out of the parents' house, starting families, etc.
Bt his solution is all wrong. Mark suggests limiting the debt you can assume to $10,000 per year.
I don't think so Mark because
- This does nothing to address the existing problem.
- This does not link accomplishment or course completion to the loan.
- This does not give college administrators much incentive to economize, which is the REAL problem.
The amount of money available for loans should start shrinking year by year. This would put colleges on notice that their product is not ;lsubject to unlimited demand, totally elastic if you will.
And frankly I would limit loans by major. It is ridiculous to let someone in marginal job opportunity majors like fine arts to pile up tens of thousands of dollars. Come to think of it, there should be a ceiling on how much one can boorw by major, the better the chances of getting the job we might lend you a bit more money.
But as long as the govt is in the game, the gaming of the system by colleges will continue.
I came across this related article today in the WSJ that I found extremely interesting. The article speaks to the challenges young people face when racking up student loans but do not complete their degree.
http://online.wsj.com/articles/a-bit-of-college-can-be-worse-than-none-at-all-1413158511?mod=WSJ_hp_EditorsPicks
Posted by: Christopher Miller | October 13, 2014 at 12:57 PM