BestBuy isn't on the hook if I buy $20k of stuff on my credit card and can't pay it back. The bank that gave me the card is on the hook.
We don't blame BestBuy for having prices that are too high, or not educating shoppers that their quantum dot TV's will be obsolete and valueless in a few years.
The main problem is that not only is the government subsidizing the loan, but they're never dischargeable in bankruptcy.
The banks are the ones that truly have no skin in the game. Universities at least need to be able to point to graduation rates and successful graduates of their programs, the quality of their internship opportunities and career services department. Not that they're worth $250k/student, but the universities at least have some vague reputational stake in this that will impact their ability to recruit more students. For a little while when someone google's the quality of Columbia's program they may see these posts. The more these issues come out, the bigger the impact on schools.
Banks on the other hand? They won't lose money, business, reputation, prospective employees... Nothing.
We don't blame BestBuy for having prices that are too high, or not educating shoppers that their quantum dot TV's will be obsolete and valueless in a few years.
The main problem is that not only is the government subsidizing the loan, but they're never dischargeable in bankruptcy.
The banks are the ones that truly have no skin in the game. Universities at least need to be able to point to graduation rates and successful graduates of their programs, the quality of their internship opportunities and career services department. Not that they're worth $250k/student, but the universities at least have some vague reputational stake in this that will impact their ability to recruit more students. For a little while when someone google's the quality of Columbia's program they may see these posts. The more these issues come out, the bigger the impact on schools.
Banks on the other hand? They won't lose money, business, reputation, prospective employees... Nothing.