The fairly recent law that you cannot bankruptcy out of a college load caused all this. - Lenders are willing to lend to anyone knowing they will HAVE to pay. - Colleges over-inflated costs, way beyond inflation - It balanced out to this shit. In the past, colleges had to be careful, and so did lenders, because lots of people just didn't go to college due to cost. So they had to sell their worth.
Well.. the problem is how can lenders "be careful" when loaning to an 18 year old, which we can call an adult all we want but an 18 year old on their way to college is basically a grown child with no money. So how can a lender protect themselves? Make a parent with enough money co-sign? Then you are essentially systematically not giving loans to poor people.. and only giving "loans" to kids with parents who have mone…
If you come from a not so wealthy background, then you only get a loan for a program that has a higher earnings potential than what you put in. I mean come on, Williams College, the supposedly best liberal arts school in the country has a "median" graduating salary of 58k, and this number does not include the possibility that you could graduate with a major no one wants to hire. 1 year of cost of just tuition and room and boarding is 74k. This does not include other costs like health insurance, books, and other equipment, extra living costs. You add this up, you can easily run up the bill to 400k. You seriously think a person should be able to get this loan to graduate in "Arabic Studies"? I mean I am sorry that people come from a poor background (me included), but taking out that 400k loan without any checks and balances seems irresponsible.