Quote:
Originally Posted by Tuma
yo zimm, prob not the best place to ask, but what do you think abt the student loan bubble/sustainability? nothing specific, j/c what the future bodes.
There are people with more expertise than me, and I would encourage you to look at resources where people have much more experience in economics for the answer.
My take is that it is extremely unsustainable, and I don't see a solution to it beyond massive government intervention. Whether that comes in the form of forgiving loans, controlling prices, or something else, I don't know. But it is going to happen eventually.
Colleges have no incentive to reduce costs as long as loans are still freely available. They still will keep building new buildings and research facilities so they can maintain their academic prestige, and as long as that happens then costs will still go up.
The "bubble" will burst eventually, but that can take a wide variety of forms in how it actually happens, and I have no clue what exactly would cause it, or what the higher education system will look like once it does.