That is why the government should never backed college loans.
I get she’s on some sort of grant or free money of some sort… but it’s always my thoughts that colleges should underwrite their own loans.
Hear me out. Let’s say you have jewelry maker. This jeweler says kids 18yo can buy a watch that is an “investment” in their future because they will always be able to tell the time and never be late.
The watch is $10k. That 10k watch will be worth 20k after you have gone through the design process because the jobs you will be on time for will be much more valuable.
Mr.Big gives you loan… He will give you that 10k but the jeweler won’t care because he’ll get paid his money no matter what happens. But, jeweler says “gee, we could sell watches to everyone. We could also make money by adding more stuff to those watches as “important add ons” like GPS or grammar correction. Then tell the buyer they are needed for an even bigger and more lucrative job.
Mr.Big says “cool, once they buy the watch they will never be able to get out of the loan… I’ll slap 5% interest. So the more people that buy watches, the more money we make. The more shit these stupid kids add to the watches, after us telling them how important they are, the more money.” They create departments to develop more shit to load on these watches.
Suddenly you have 25 year old walking around in $400k watches that hang on their wall in a cute frame that are nonfunctiona. All while this 25 something yo is waiting tables or changing tires!
Or… if the jeweler can only sell watches to these kids by loaning the money they want to loan out, knowing these stupid kids can discharge the debt back to the jeweler when these kids have a nonfunctional watch and its not what was promised; the only way to get to work on time and the only way they can make money.
Don’t you think the jeweler would be highly aware of who they sold to, produce a product that is actually a benefit and isn’t stacked full of unnecessary waste ?
In no time, the jeweler would be selling a timex. It’s a great piece, people that need to know the time will have it, it’s affordable for everyone and it’s not considered a necessity when the street clock is just as good.
I know college and higher education is very much needed for many careers. I want my doctor to have an expensive watch. But I hate that all young kids just go to go. My bff daughter- 6years in design school - she does mircoblading and makes a killing at it. But has 350k in loans. Crazy!