Great Minarchistan wrote:Bear Stearns wrote:The government should stop guaranteeing student loans, forcing lenders to actually be diligent about who they give loans to, meaning that the only people who will receive student loans will the be people least likely to default/most likely to pay them back, i.e. students with good credit, STEM, and business majors.
Humanities & liberal arts will return to once more only being studied by the rich kids who can afford full tuition.
idk if that'd solve the "problem" though, lenders would probably find other asset guarantees parked around to keep interest rates low. Not that this is inherently bad.
To make things cheaper, lenders would demand that college be shorter and that you should only take classes relevant to your major so you can graduate more quickly.
And I don't have a problem with this. My non-major classes were the biggest waste of time and I was still paying full tuition for them.
It would actually be awesome if you could graduate in two years doing only your major-required work.