Guaranteed Student Loans

How they killed the American dream for millions.

I consider it criminal, ethically. Get the damn government out of it.

[Early afternoon update]

“Millennials are the most educated generation in American history, but many college graduates have tens of thousands of dollars in debt to go along with their degrees.”

They are not (necessarily) “educated.” Many, perhaps most, of them are merely credentialed.

2 thoughts on “Guaranteed Student Loans”

  1. Kowalski fails to mention that the “guarantee” actually refers to the bondholder not the borrower. The bondholders cannot lose their principle because the borrowers cannont ever discharge the debt and the government will cover the loss in the interim. The solution is to eliminate this guarantee by allowing student loans to be dis-chargeable in bankruptcy. Incentives matter, and that single change would alter all of the incentives. The pool of loan-able funds would shrink, the interest rates would be much higher and loans most likely would trickle to students and institutions where the loans provide a reasonable risk of being repaid, i.e. majors that provide the highest remuneration and institutions which charge the least tuition.

  2. Free college for everyone regardless of major earns you the credentials needed for a guaranteed income.

    That seems obvious…

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