Unfortunately, higher education will be completely opposed to this plan, because they get paid upfront, take on zero risk, and can charge whatever they want. (Yet another example of moral hazard. When the loan cannot be repaid the taxpayers foot the bill. Remember, “gains are privatized and losses are nationalized.”) Also as incredibly flawed as the present system is, I wonder if it provides an avenue to higher education to students that would otherwise have no such path. I propose that the universities should be financially responsible (instead of the federal government) when the student cannot repay the loan. That would provide a strong incentive for universities to have A. the student graduate B. have a manageable amount of debt with respect to future income.