Originally Posted by Dude
Originally Posted by Bostonian
Originally Posted by aquinas
I predict we'll see student debt securitized by major and class, with differential rates of return by area of study, region.
I support this, but such lending is crowded out by the current system of government-guaranteed loans, which charges all students the same rates and effectively gives the largest subsidies (the difference between a market interest rate and the government interest rate) to the worst students who study the most impractical subjects.

I don't see how financing student debt at significantly higher interest rates is a practical solution to excessive education costs.
Artificially low mortgage interest rates contributed to a housing bubble. Raising student loan interest rates to a level reflecting their credit risk would exert downward pressure on college costs, since many people would not be able to borrow as much.