The solution is obvious: Allow bankruptcy to erase student loan debt.
Also, it'd be nice if the OP would label their graphs. I'm not seeing any titles or figure legends, just lines saying $T goes up and to the right over decades.
Also, it'd be nice if the OP would label their graphs. I'm not seeing any titles or figure legends, just lines saying $T goes up and to the right over decades.
What’s the downside?
Maybe the government should get out of the loan business and we can go back to complaining that people can’t afford college.
People will have to choose cheaper colleges.
It will also make financial institutions actually assign appropriate risk to the loans, and schools will be forced to correct tuition. Right now schools can charge whatever they want because the only associated risk to banks is death.
The whole purpose of these programs is to put advanced education into the sphere of people in more difficult circumstances.
Of course not, they’ll lower tuition or come up with their own loans.
Easy money just makes things more expensive - education, housing, healthcare, whatever.