Did Gov't Create The Student Debt Crisis?

[TexasLawyer2000]

Originally Posted by tnff

The reality is most kids today still work during the summer and often during the school year too. And still have to take out loans. A big part of what they leave out of these discussions is states have systemically reduced funding since the 1980s, transferring a lot of the cost to the students.

And a large part is that states systemically INCREASED funding between WW2 and the 1980s allowing for a lot of low quality schools to pop up and expand. So yes, states have been cutting back and this is a good thing. But the federal government created student loan programs that allowed funding to any school no matter whether it was of high quality or low quality. And the result is that we end up with the majority of students dropping out of college before completing.

[TexasLawyer2000]

Originally Posted by skeddy

if the loans were paid directly to the colleges that may be one thing but these loans don't require any of the money to be spent on tuition or books. I had my own kids to pay for, not your kids car payments or vacations.

Student loans are paid directly to colleges. What are you talking about?

[TexasLawyer2000]

Originally Posted by DrPibbs

What colleges did during covid gave us a clear indication there will be no free college. They moved classes online but charged the same tuition and fees. I know the staff was still getting paid, but campus operating costs were definitely lower. The campuses were closed but the government grants were not cut off.

Covid really challenged education across the board. Those that were hurt most were young children and college students where being on campus (or in school) matters. It's a shame that they had to move all education online.

[RamenAddict]

Originally Posted by skeddy

if the loans were paid directly to the colleges that may be one thing but these loans don't require any of the money to be spent on tuition or books. I had my own kids to pay for, not your kids car payments or vacations.

They are? Most students have expenses other than what is related to stuff that is on campus, so they will get a check for any excess, but tuition/fees are paid out of the check first as well as other expenses going to the school. Students have a student budget for the year depending on whether they live on or off campus, and can get up to the student budget. I’m not aware of how a student would be able to get enough to buy or make car payments off student loans.