Student loans should be risk evaluated just like a car loan, a mortgage or a business loan. Students more likely to repay loans should get the lowest rates, others higher rates. Consideration of the field of study should be paramount. Degrees in engineering, business and tech are low risk becasue the probability of job security and repayment are high. Sociology and history not so much. The schools credentials, and accreditation should also be a factor. Bottom line is the program should be run from a business standpoint not what's politically popular.
Having said that I think there is at least some merit to free tuition for 2 year degrees much like we have free K1-12 so long as it's in a field that will lead to a job, not some BS degree. I would rather spend money on education than building more prisons to house more inmates at $30K/year.
I totally agree.
1) Cut out scam schools/make them ineligible for student loans and/or attack their accreditation. Who on earth is in charge of allowing every tom dick and harry start a college nowadays anyway?
2) Treat student loans like any other underwritten loans. Not just hand out cash to everyone, no matter the degree.
3) I could get on board with 2 year free community college, with minimum GPA requirements, etc. This could also be an evaluating factor in the student loan underwriting process when that student tries to advance their education.
4) Stop pushing everyone towards college. It isnt for everyone. Realistic student loan standards/underwriting will help. Trade schools are very important. Even low level, unskilled trade (ie janitors, etc) is very important for society to function.
Right now, the majority of the work force have college degrees from who knows where, are sitting in a cramped cubicle, working 60 hours a week, earning $30k a year, and up to their eyebrows in student loans.
Meanwhile, there are plumbers, electricians, HVAC people working the same amount, making well over $100k a year, and have no student loans.