Earlier quoted context omitted.
>or the academic pyramid becomes populated with only those with burnable wealth. yes, but it doesn't reasonable that people should ruin themselves out of - what? Some patriotic duty to keep American schools egalitarian? the people taking risk on loans are making a bad decision for themselves, the academic pyramid population problem is a bad decision for society.
> the people taking risk on loans are making a bad decision for themselves Everyone in the world takes risks. Can you say it was a bad decision for the people who took the risk, took out loans, and eventually became tenured professors? Of course in retrospect it feels like a bad decision for those who didn't become tenure track professors, but nobody knows in advance who will beat the odds and who won't.
Yes. A decision can only be evaluated using what is known at the time, not what is later known in hindsight. Betting on an inside straight in poker is a bad bet, even if in one particular instance you got the card needed.