Student Loan Forgiveness

[dfrecore]

Over the past 20 years, education costs are up 50%, while wages have increased 10%. (adjusted for inflation)


https://www.npr.org/2020/12/16/941292021...ca-adds-up

Loan forgiveness does not address the problem with this, and instead exacerbates it.  There is NO incentive for schools to rein in costs when the government backs loans, and then forgives them.  Schools will continue to spend like lunatics as long as the government continues to do idiotic things like this.

The only way to get this under control is for the government to stop backing loans, and then banks can decide if they want to loan to people who choose degrees with no job market.  If you only need 10,000 lawyers a year, banks will look at how many people want to go to law school and then decide if that's a good deal or not (it won't be).  If you only need 500 gender studies majors a year because there are no jobs outside of academia for them, then banks won't back those loans at all, and then schools will stop offering them because there won't be enough students to take it...and so on.  Accounting majors will always be able to get loans - as will engineers, and English majors, and whatever else is useful.  Oversaturated majors will dry up.

Then, we need some sort of cap or ratio on how many administrators there can be at a college.  I'd probably look at some private schools and shoot for that.  Private schools are usually run more like a business, and don't have near as much overhead as public, because public schools is just another name for "taxpayer funded" schools.  It's not their money, so they don't have to be careful with it.  The amount of overhead there is at colleges now is absolutely ridiculous.  The costs are out of control.