Teddoman wrote:Here's an interesting proposal for a private sector solution to the quandary of educational loans that can bankrupt young people. Instead of government guaranteed educational loans, create a market for private sector financing of education based on the future incomes of students. So higher earners pay more than low earners. Apparently a variant of this system is in place in Australia. The idea is basically private venture capital-like financing for students.
The College Graduate as Collateral
That is the exact opposite approach that they should be taking with loans. That just encourages more liberal arts degrees that have very little real world usage. someone getting an engineering degree shouldn't be subsidizing someone that will spend their college years drinking and won't have any real world skills. If they want to associate loans with earning power then allow larger loans to higher paying majors and cap loans for lower paying majors. If the loan amounts are impossible to pay back as many are claiming then they shouldn't have been loaned the money in the first place.