Fix student loans by giving colleges “skin the game,” writes Alex Pollack in The American.
(Colleges) are the effective originators, the promoters, and the chief financial beneficiaries of student loans. It is their rising costs which result in ever more debt and more risk of default for student borrowers and for taxpayers.
The federal student loan program should make colleges share the risk of bad loans, Pollack writes. Colleges would have an incentive to avoid charging more than students will be able to repay.