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Actually it wouldn’t. One reason that admitting thousands upon thousands of people into institutions of higher education is that no matter how poorly they do, the college gets paid. If that were no longer true, if students were no longer money buckets, then they’d either have to do without students or retool to provide value to their students. That means more practical education and lower costs. And obviously no bank is going to back a dischargable loan for “activism studies” because the student won’t be able to pay for it.
Yes, and that’s why making them dischargeable doesn’t make sense. The schools are paid up front. The loan payments are made to Federal Government. If you allow the loans to be discharged, the schools don’t lose a penny, and it’s the taxpayer who bears the cost.
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His point is that the college already got the money, so they don't care if the loan is dischargeable or not. The one on the hook if the student is allowed to default is the government, not the university.
Most student loans are from the government, not from private banks. And the government doesn't make a risk/profit calculation before lending you the money.
Private parties wouldn’t give out loans for worthless degrees and bad students when the degree is the collateral.
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