Student Loan Mess

As we see here: Instapundit is linking to WaPo about the trouble students are having paying back their student loans.

My Solution: Get the government out of the student loan business. Make them stop giving grants and guaranteeing student loans. Then let private lenders establish their own rules for what they think is a good return on investment for student loans. Let the lenders decide how they will secure loans to prevent unscrupulous students from running up huge debts and skipping off to bankruptcy court. Let the borrowers decide how much interest is too much. LET STUPID PEOPLE SUFFER THE CONSEQUENCES OF THEIR STUPIDITY. And if you MUST have some sort of bleeding heart intrusion into market dynamics, let it be in the public school. It should be a required course for every HS sophomore or junior to take a class in common economics. Every student should be required to calculate the return on investment of several different college degrees, including the loans, interest rates, entry level jobs in that field, and variable costs of state college vs private aristocrat schools. Teach people to make wise choices.

Pay for it by firing all HS guidance counselors. Seriously, they don’t do squat anyway.

The problem now is directly attributable to interference in the marketplace by the federal government. If you want to fix the problem, go to its source and get the government out.


About No One

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