nordlead said:
In part it is because the government makes it so easy to get loans. Since it is easy to get loans, schools figure they can charge whatever they want and people can take out more loans. The government is more than happy to have more loans given out and the cycle repeats. Inflation is ~3%, school tuition costs go up about 7%. Obviously there is something wrong with the system, and having the government pay for it (like a lot of European countries) isn't the solution needed. I mean, if we did that we'd end up with the university system working like the stupid NY State school system (In NYS you have to take "regents exams" which are only recognized within NYS. To make matters worse we waste tons of money on it and all they do is teach students how to pass the test, not about the actual subject). |
Actually, private banks make loans out also. They are structured so you can't ever default on them, file bankruptcy or anything else. It is possible to see welfare payments ans social security garnished to pay them. End result is lenders lend without even giving thought to whether what students borrow for will ever translate into employment.
Under this system, I have witnessed my student loans go from owed $32K to over $50K with no signs of myself being able to pay back, because I can't find work.
