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Comment by wingspar | Hacker News Reader

Is there some reason these institutions could not make direct student loans themselves to their students? That would give them some real ‘skin in the game’ ensuring a good education with good job prospects.

It would be telling if they ended up lending to students in some majors but not others.

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My state school is already doing it (though it is in addition to the federal program, not in lieu of it). The loans are serviced by a company, but the actual lender is the state as far as I can tell:

> UNC Loans are based on financial need and administered by the University. If you complete a FAFSA and are found eligible, a UNC Loan may be offered as part of your overall financial aid package.

> Interest rates are fixed at 5%, and interest is deferred as long as you are enrolled at least half-time. UNC Loans are repaid to ECSI, the loan servicer.

New Jersey does this as well via NJCLASS loans. They are only disbursed by NJ schools though the lenders are big loan servicers, like MOHELA

Caltech used to do it too (also ECSI)

Even if the loans weren't subsidized by the government, the schools wouldn't do it. It's more likely they would be financed by banks like they are with other goods.

That's just called an institutional loan. Also I don't think the top 50 wealthiest private universities need us to worry about their students' outcomes.

Massive conflict of interest? You will not fail students and you will inflate grades much more than this is already done.

Also, education is for education not for job prospects. The fact that you want this to be the wrong way around is a very American perspective.

That might work for a few years, but if all institutions did that it would collapse the whole system. A university degree is for jobs why would you think otherwise?

A university degree, for many jobs, is a box tick.

A university for many careers, is a signal.

A trade school is for jobs.

Skills are different from knowledge.

Etc.

It isn't, why would you think so?

Student loans would also have to be dischargeable in bankruptcy to give them skin.

They are. It's only the federally-backed student loans that are difficult to discharge.

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