Student loans, rising tuition, and debt

Student loans comprise over a trillion in debt. Some of these are priced as high as 28%. Tuition has risen sharply with Congressional guarantees. FASFA making available ever increasing loan amounts per semester. Students see these huge credit lines as an opportunity for free money. Many enroll for the check, and drop out when the check arrives at the same time that the first tests deliver the message that college is challenging. In the process, they lose eligibility for Pell grants, and have difficulty in returning to school when life shows them the need. Many have called for a comprehensive solution. I propose that colleges who accept federal funding be required to post average first year salaries per specific degree. The student who seeks a degree needs to have the knowledge available to weigh the risks and rewards of their work. The schools benefit by showing the excellence of their programs. Second, allow the student to borrow only what they need, with the understanding that they must begin repayment in four years, unless accepted in a graduate program. Third, make moneys available as we pay off the national debt, to fund these loans at 5% interest. Fourth, allow those with outstanding loans to replace their banks with a debt loan. They pay our debt as they pay their own. Any money paid to the national debt, from whatever source, reduces the need for future bond sales, reducing the debt, while the funds become available to loan to others. Students make informed choices. Former students save money, and get out of debt quicker. Colleges match tuition to anticipated earnings, generally reducing tuition on a free market basis. We all win, for the national debt is reduced, and, when paid, we can reduce income tax. #studentloans #nationaldebt #tuition

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