Make education loans on par with loans for real property or vehicles. A bank wouldn’t give you a loan for 100k for a honda civic. Maybe we shouldn’t give loans to a low paying subject major.
No federal loans to students for education where the major is for a job category that has a mean pay lower than the required amount to make the loan payments AND live off of simultaneously.
No federally backed school loans for majors with a historically high default rate.
Allow school loans to be included in bankruptcy. This will give those banks the incentive to write good loans.
I hear what you’re saying here, but I think the best solution would be to privatize the student loan system away from the government. Student loans are arguably a benefit for people that were in the top 50% of their school class, and people in the bottom 50% work jobs and contribute taxes to pay for that… they shouldn’t have to. If colleges and universities originated loans and also had to collect, they’d have an incentive to help people succeed. They wouldn’t offer loans in majors that had poor performance. That, or they’d work to improve the performance of that offering. It aligns the goals of the institution with the goal of the people receiving the benefit.
maybe government could incentivize loans or financial support to people from disadvantaged backgrounds, but that’s about it.
Government financial aid is one reason that tuitions go up and up year after year. This would make education an industry that must succeed on its own, not on the backs of $1 Trillion + of student debt.