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I always saw the lenders themselves as predatory. If a student tried to take out a mortgage, the bank would look at their ability to feasibly pay back the loan before denying them or approving them at a lower amount. It seems like folks just get their student loans rubber stamped. Since it's so easy to get lent more money, colleges are incentivised to charge more.

I'd be interested to see a world where your degree itself was factored into the equation. Pursuing biology? Nope, we've got too many of those and biologists don't make enough money on average. You'll only get lent a safe amount. Pursuing law? Now that's a safe loan with good payback odds! This would likely incentivize schools to put more scholarships in the less lucrative fields, and potentially keep those fields from becoming overpopulated. Or maybe folks will need to start their education in a community college or state school to build credibility. I'm sure the implications would be more nuanced than that, but I think that the incentive system for lenders is currently not working as intended.






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