Start Denying New Student Loans

Student loan forgiveness – at least in part – is a real possibility under President Biden.

However, this is just half the battle. We must also stop making new loans – otherwise, all the student debts will eventually re-appear.

We can start by denying federal loans for careers that do not reliably produce high earnings.

No one would be barred from studying social work or art history– but they could not borrow federal money to do so. They would have to rely on grants, or family wealth.

If an industry actually needs new employees – whether plumbing, welding, or computer science –  the industry will provide its own money for grants and apprenticeships. (For example, Audi is paying tuition for young mechanics, in order to create a steady pipeline for their workforce.)

Compare this to fields of study that have a tremendous oversupply of candidates. Ph.D. programs in the humanities are notorious for recruiting graduate students, using them as indebted teaching assistants, but leaving them virtually unemployable.

 Students should not automatically get huge loans to ‘follow their dreams’ in an over-crowded field.

Is this paternalism? Of course, and not a moment too soon. Look at the wreckage that has been wrought by guaranteed loans for any course of study, and at any age.

 Without federal loans, few people would pay ludicrous amounts of money to get  a degree, and universities could not charge these amounts. Some liberal arts departments would close, other than in well-endowed Ivy League institutions. If this is troubling, then we can spend federal money to wipe out tuition….and not rely on debt at all.