College costs too much. Students owe too much money. Something needs to change.
The federal student loan program was meant to help people afford college. Instead, it made college more expensive for everyone. Now students graduate with massive debt they can’t pay back.
Here’s a different idea: stop letting the government handle student loans entirely.
How Government Loans Made College Expensive
Think about it this way. When anyone can get a loan for college, schools can charge whatever they want. Students will find a way to pay because loans are easy to get.
College costs have gone up much faster than everything else. Way faster than what normal inflation would explain. Students now owe about $1.6 trillion total across the country.
Getting a student loan is easier than getting a car loan. You don’t need good credit. You don’t need to prove you can pay it back. You just need to be enrolled in school.
This system lets colleges keep raising prices. They know students will find the money somehow. Even if it means being in debt for decades.
Research shows that for every dollar the government gives in subsidized loans, colleges capture 60 cents by raising tuition. That’s not a coincidence.
Not All Degrees Are Worth the Same
Here’s something nobody likes to talk about. Some college degrees help you earn good money. Others don’t.
About 35% of liberal arts degrees don’t pay for themselves. Neither do 23% of other bachelor’s degrees. Students spend years paying for education that doesn’t increase their earning power.
But the loan system doesn’t care about this. An 18-year-old can borrow $100,000 to study something that won’t help them get a good job. That’s not fair to the student.
Most teenagers don’t think about return on investment when picking a major. They choose what sounds interesting or fun. That’s normal for their age.
The problem is letting young people go into massive debt without considering if they can ever pay it back. That’s predatory lending, plain and simple.
Even the government loses money on this deal. They expect to lose 19 cents for every dollar they lend over the next ten years. It’s bad for students and bad for taxpayers.
Private Loans Would Fix This
Moving to private loans wouldn’t stop people from going to college. It would just make the system smarter about who borrows what amounts.
About 7% of student loans already come from private companies. These lenders look at whether borrowers can realistically pay back the money.
Private loans would still be available to everyone. But the terms would depend on what you’re studying and where you’re going to school. If your degree is likely to lead to a good job, you’d get better rates.
Students couldn’t borrow huge amounts for degrees that don’t pay well. Wealthy families could still pay upfront for whatever they want. But middle-class kids wouldn’t get trapped in debt.
Schools Would Have to Compete
Without easy government money, colleges would need to cut costs. They’d have to fire unnecessary administrators. They’d need to focus on programs that actually help students get jobs.
Schools would compete on value instead of just prestige. The best programs would attract students. Overpriced programs would struggle.
College costs have become unsustainable, and student debt continues to rise as a result.
This isn’t about limiting opportunity. It’s about making sure opportunities are real and affordable.
The current system hurts students and wastes taxpayer money. Only university administrators and government employees benefit from keeping things the same.
Public universities have raised tuition sharply, knowing government aid will cover it. That cycle needs to break.
Time to try something different. Let the market work instead of letting bureaucrats make these decisions.
Private lending would protect students from bad financial decisions while forcing schools to provide real value. Everyone wins except the people who profit from the current broken system.