re: The student loan industrial complex

A good solution is to follow the Constitution.The bankruptcy clause allows Congress to establish uniform bankruptcy laws across the land. So basically there is a right to bankruptcy and Congress can limit it. Limit it they did by not allowing people to discharge student debt.

Change the law back to what it was in the 80's on 90's and make student loans fully dischargeable. You face a pretty stiff consequence for filing a bankruptcy, so most would not do so lightly. Second, lenders would have to worry about students' future ability to pay the loans back. They may decide not to lend to those wanting to major in study gender studies etc. Third, the Universities would have to keep tuition increases in check. Increases far exceeding the rate of inflation would come to an end. This solution brings sanity to the issue without the proposed giveaways that just encourage more bad behavior by borrowers, schools, and lending institutions.

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First in 1976 with the Higher Education Act of 1976 and then doubled down with private student loans with the Bankruptcy Reform Act of 2005.

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Yet student loan problems didn't explode until 2010. Funny that.

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That didn’t happen because everyone is charging fair value for an education

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Students demanded projection screens in classroom, wifi everywhere, a rebuilt library, the lazy river, newer dorms, yadda yadda. You don't get the enrollment unless you meet consumer demand. Is it ridiculous? Yep.

Early Childhood Education students will blow close to 90k (in state) getting a degree that will pay them $55k a year in Texas to spend time cutting construction paper in a third grade classroom. Could they have cut said construction paper with an eight week bootcamp on classroom management? Sure.

What does your $100k degree from the business school actually teach you? It doesn't take you $100k and four years to teach you how to run an accounts receivable/payable team, you need life experience with people, and some knowledge of fraud tactics, which I can teach someone in three days. Yet, four years, and $100k.