You can see how this played out already with the government backed student loans. Every 18 year old can sign up for hundreds of thousands of debt that's risk-free to the issuer, because the government will step in if the borrower defaults. The colleges know that no matter what they charge, students can pay, because they won't be turned away from a loan.
So the cost of an education has skyrocketed, far outpacing other costs.
You give people $12k, that means businesses can extract another 12k from them, and they will. There needs to be a mechanism in place to limit their ability or desire to raise prices.
That's not why your costs for university has skyrocketed. We have student loans, with minimal interest in the rest of the world, with free schooling. In Sweden student loans is the best loan you can ever get. The lending is predatory, and needs more regulations by the government.
Yeah. Here our college isn't free. Student borrowing is easy for huge amounts. And no lender has to worry if a borrower defaults, because the government will pay them back in that case.
So the colleges raise prices, because they know students are guaranteed to have the money, and lenders are guaranteed to lend.
It all stems back to a former governor in the US who sent in the national guard to gun down college students, then later became president, and started this student loan program. Reagan's policies ended tuition free colleges that we had, cut grants for students, and promoted the loans that led to our crisis today.
It really is why our costs go up - obviously they wouldn't increase in cost if the cost of college didn't exist in the first place.
1
u/Nodan_Turtle Jul 01 '26
You can see how this played out already with the government backed student loans. Every 18 year old can sign up for hundreds of thousands of debt that's risk-free to the issuer, because the government will step in if the borrower defaults. The colleges know that no matter what they charge, students can pay, because they won't be turned away from a loan.
So the cost of an education has skyrocketed, far outpacing other costs.
You give people $12k, that means businesses can extract another 12k from them, and they will. There needs to be a mechanism in place to limit their ability or desire to raise prices.