Good. If nothing else, maybe it’ll help instill values of financial responsibility (I watched a report on crippling student debt where a woman went $150k in debt to get a theatre arts degree from NYU and now works as a waitress). There are actually lots of options to get a good education without breaking the bank. Transfer from community college is just one. Another is becoming a state resident for good state schools…
Shouldn't that be values of financial "viability."?
Most people don't want to becomes dead beats on their debt.
Unfortunately here's a whole system in place that encourages 18 year olds to take on hundred of thousands in dollars in debt in order to purse a degree which has very few professional prospects of earning enough to pay that money back to the lender(s.) Practically speaking it's debt-peonage.
To contrast to other forms of loans - if I earn $30K a year and apply for a mortgage for a house costing $800k I likely will turned down by the lending institution since I lack the means to meet those mortgage payments. In other words I am not a good risk.
However the same lending institution will gladly allow me to borrow $260K for 4 years of NYU tuition in order to obtain a degree in Drama that I will have almost no chance of being able to pay back.