Goldice posted... Then no one would offer them other than the govt. And even then...
Students are high risk when it comes to loans. You're giving new adults with no real credit history and little collateral tens and hundreds of thousands of dollars. If they could discharge through bankruptcy or didn't offer a profit margin through interest, no one would offer them. Itd be a really dumb investment. And then you're back to the same problem of "a college degree is a huge factor in future earnings. So the have nots will be even more screwed".
This isn't a defense of the current system. But it is a complicated issue. Without loans it'll be harder for people to get that piece of paper, but it's possible it will drive down the expectation for it. But with the infinite money right now... colleges just keep asking for more and more.
This is why I'm pro forgiveness, but ONLY AFTER we figure out how to depress costs. Otherwise it's just a giant taxpayer subsidy to colleges and banks.
I love when people say something won't work, when it already does.