The people who are constantly complaining about Bobo and…..
- By jtruhedges
- The Dawgvent
- 142 Replies
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I think we saw something similar back in the 90s where the government let people buy houses without down payments. It was a mess when all of the foreclosures started flowing in.The student loan debt issue is almost entirely due government backed ease of access to funds with nothing more than a signature required to secure the loan. Colleges have jacked up tuition rates and fees to and swelled staffs with staff and teaching positions that literally only have no market value outside of academia.
This gets really simple, make money harder to get using a vetting process for loans that applies ratios that take total debt and ability to repay into account and you’ll see college demand drop until the schools bring their costs in line with realistic market pricing conditions. Systems like Hope can fund tuition for students that perform academically.
If we gave away government backed money to buy houses with no strings to anybody who could sign their name like they hand it out for college, tax payers would be on the hook for massive under performing loans while housing prices themselves would be inflated beyond the ridiculous mess we see today.